Hanoi’s real estate market has awakened after two months of hibernation by the news that the capital city will have five satellite urban areas. Additionally, the demise of gold trading floors has brought more capital to the real estate market.
The low-income houses sector is expected to boom this year, driving the recovery of the real estate market, experts have said.
Around 20 billion USD worth foreign direct investment is expected to flow into the property sector this year, the Vietnam Tourism Property Association said.
Leaders of the Hoa Lac and HCM City high-technology industrial parks will have to submit proposals on policies and capital requirements to the Government by April after land clearance was totally suspended in 2009.
The cost of leasing offices in Ho Chi Minh City dropped 53 per cent last year as the global slump forced companies to shelve expansion plans, according to real estate broker Cushman & Wakefield Inc.
The Hanoi People’s Committee will revoke licences for more than 364,000sq.m of public land because investors have been too slow to develop it or they have used it for the wrong purpose.
Real estate in several areas of the capital city has seen 20-30 per cent increases in the last month.
Though VinaCapital’s sale of shares in big real estate projects in Hanoi and HCM City has sparked concern about the market’s bouyancy, insiders say everything is fine.
High retail rents in big cities have prompted investing in high quality trade centre development. However, investors have been warned that supply will one day exceed demand.
The groundbreaking ceremony of the 65-storey Hanoi City Complex, took place on October 22 in Hanoi at the attendance of many high-ranking Vietnamese and Korean officials.
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