» » Hanoi housing, land prices surge

The price of land and apartments in the capital, especially in the western part, has significantly risen in the past two months, according to industry insiders.

Tran Anh Dung, director of the Ba Dinh Property Service Consultation Company, said prices of land near residential projects in Ha Dong, Tu Liem, Hoai Duc and Dan Phuong districts had gone up.

The projects include Duong Noi, Trung Van, Phung Khoang, Van Khe, Van Quan, Van Canh, Tay Do and An Khanh.

Nguyen Ngoc Minh, who runs a property brokerage in Tu Liem District, said the price of land for villas and houses near the projects had surged by roughly VND2-3 million per sq.m.

Land prices at Duong Noi project have increased to from VND11 million to VND18 million per sq.m-an 83 per cent rise.

Prices of land in Trung Van, Phung Khoang and Van Khe, which lie along the expanded Le Van Luong Street, have also risen sharply.

Prices of land in Van Khe have risen by more than 80 per cent over January. A square metre of land in the area has gone from VND16 million to VND29-30 million.

Prices of land in good locations have hit the roof. For instance, a square metre of land in Trung Van is now worth VND50-51 million.

The director of JonesLang Lasalle Company’s Strategy Consultation Department, Dang Van Quang, said investors looking for high profits were helping to push up prices.

The price of apartments in residential projects in Ha Dong, Tu Liem, Hoai Duc and Dan Phuong has also risen.

Apartments in Van Quan, for example, are priced at VND17.5-19 million a square metre compared with VND16-17 million a few months ago.

The highest increase has been in Hoang Dao Thuy Street’s Number 4 and Number 5 residential projects. There, the price per square metre has risen by VND3-4 million since March. The initial price of the apartments was already high at VND24 million per sq.m.

Industry insiders say the surge in prices has largely been caused by a shortage of land and apartments.

While the sale of land and apartments in residential projects in the western part of the capital has heated, the market for luxurious apartments in the capital remains dismal.

Although prices have fallen by as much as 10-15 per cent, there have been few successful transactions.The outlook for leased apartments is similar.

A recent survey by Savills Consultation Company showed the average occupancy rate of apartments for lease in Ha Noi in the first quarter was 88 per cent, a one per cent decline over the fourth quarter of last year.

The average leasing price also slipped 2.8 percent.

Source: VNS

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