Time of foundation soil?
Individual data from each market shows that Gia Lam land prices are rising, especially in Kieu Ky, Da Ton, Duong Xa, and Trau Quy. In the past year alone, land values in the area have increased by 15-20%. For example, if land on Ngo Xuan Quang road was offered for sale at 100 to 200 million dong per square meters earlier this year, the rate is now increased to 120 to 135 million dong per square meters.
At the same time, before information of a 272-hectare smart city project went public, Dong And’s land price repeatedly “created waves” when investors took turns together to buy lands here since early 2018. In areas near Thang Long and Nhat Tan bridges, residential land, individual houses, and townhouses are the property types with the highest price increase at an average of 3 to 5 million dong per square meters. Land prices of prime locations with convenient transport system can even increase by 10 million dongs.
Meanwhile in Long Bien, prices have also continuously increased from 50 to 55 million dong per square meters. According to Associate Director of Research and Consulting at Savills Vietnam Do Thu Hang, in the 2016-2017 period, the supply of villa land was mostly concentrated in Ha Dong, Long Bien, Hoang Mai, Tu Liem and Cau Giay. But in the foreseeable future, there will be a shift in supply when it will sharply rise in Dong Anh and Gia Lam.
Which real estate product is in target at different hot spots of the market?
Which product will investors offer?
Over the last years, the structure of the real estate market and its players has gradually been specialized and professionalized. Many enterprises have shaped and branded themselves through various real estate product types and segments.
Experts claimed that investors are running out of foundation land products after reaching the peak over recent years and they are now looking for other alternatives. Many businesses have shifted to develop social housing projects, helping solve the housing demand for workers and low-income citizens. Thus, commercial housing products particularly the affordable middle-end segment is still certainly appealing.
In addition, shophouse is currently a strong leader in attracting cash flow from investors. Evidently in Hanoi where shophouse’s supply is minimal, every launched product has great absorption rate. Furthermore, in the third quarter of 2018, according to Savills, the market witnessed a major breakthrough from hybrid products like officetel, shophouse, and shopoffice considering their exciting trading environment, in contrast to other product.
Director of CBRE Hanoi Branch Nguyen Bich Trang said that CBRE has been doing a lot of research on Hanoi development plan. Accordingly, the Northern areas and further across the other side of Nhat Tan bridge is currently under a lot of improvement. In the next five years, the area will form new urban complexes, completely transforming Hanoi’s real estate market. The middle to high end products, especially suburban resort will become a trend.
