Hanoi property market continues to remain subdued. The notable point in Hanoi property market is the price increase of the western land, however, the trading was low. Office for lease segment is predicted to continue declining in 2011.
Hanoi will restart the Red River planning. Seoul will integrate this planning with the Hanoi Capital Construction Master Plan. This project is expected to have $7 billion scheme and relocate 39,000 households. The planning area stretches from Chem to Bat Trang, which is about 40-kilometre length.
In late October, Hanoi Department of Planning and Architecture announced a list of 16 pending projects waiting for zoning, including Kim Chung – Di Trach urban zone project, which has aroused the public opinion in November. The reason is that there are eight industrial complex projects in the urban development area. Kim Chung – Di Trach urban zone has Highway Three and Five running through, thus, the planning should be adjusted. The pending time depends on the zoning adjustment.
According to Knight Frank, the office for lease market in Hanoi in 2011 would continue to have over supply and decreasing prices. New large-scale office buildings would continue being put in to use in 2011, especially the ones in the west of the city. Downtrend would continue to be seen in leasing prices to the end of 2011, and recovery might be seen from 2012.
The price of peri-urban land in the west of Hanoi has increased by 15 to 20 percent compared to the previous two months. Price of the land in new urban zones in Ha Dong area facing 40-metre road has gone up to 100 million dong per square metre. However, the liquidity of the market is actually less exciting, and the trading volume is low.
The first apartments for low-income people of investor Vinaconex Xuan Mai at CT1 building Ngo Thi Nham, Ha Dong has been put up for sale. Picking the right to buy is one of the selling forms used. This type of apartment has later been advertised in the market with the price difference of 700 million dong per unit. However, for this type of apartment, regulations only allow owners to sell after 10 years.
Foreign capital flows have shown signs of returning. According to the latest figures of the Foreign Investment Agency under Ministry of Planning and Investment, to the end of the third quarter 2010, foreign investors have disbursed over $8 billion for the projects in Vietnam. Particularly, average size of capital investment for a project in real estate sector is at nearly $145 million per project.
According to results of the inspection team on golf course projects, there are 117 projects nationwide, of which, 90 are in the planning under Decision No.1946/QĐ-TTg and 27 are not included in the planning. Ministry of Natural Resources and Environment requested the provinces to suspend those 27 projects till 2020.
The Dong La industrial complex project located close to the 4th Ring Road in Hoai Duc District by Hanoi Investment Consultant and Construction Joint Stock Company was transformed into Dong La urban area project. Hanoi’s authorities have formally proposed the government Office to consider and report to the prime minister on allowing the above company to continue the implementation of Dong La urban area project.
On November 24, 2010, the National Assembly has adopted the Resolution on tax reduction or exemption of agricultural land use, which will take effect from January 1, 2011. This resolution will be implemented during 2011-2020 period.
The supply of apartments in Hanoi has increased dramatically in the last months of the year. Many medium-price apartments have been sold in the end of the year at average price of around 20 million dong per square metre. Recently, Nam Cuong Group has launched into the market approximately 1,600 apartments. Other projects such as Hanoi Times Tower with 600 apartments, the Victoria Van Phu, Business Tower, Royal city R5 apartments, apartments in Rung Co eco-park, etc. will also be launched. According to forecast of CBRE, the market would welcome about 3,000 new apartments in the fourth quarter 2010.