Member for

3 years 11 months
Submitted by ctv_en_7 on Mon, 03/03/2008 - 11:20
According to the world’s leading real estate service provider in Vietnam, CB Richard Ellis (CBRE), the demand for real estate in Hanoi would remain high in 2008 and supply would not meet demand for the 2008-2009 period. Only after big projects become operational by 2010, would there be a balance between supply and demand.

At a press conference held in Hanoi recently, a representative from CBRE said the 1000th anniversary of Thang Long-Hanoi by 2010 and positive signs from Vietnam’s WTO membership have attributed to surging demand for real estate. In the next two and five years, several major foreign investment projects are expected to be completed and put into operation, helping overcome the problem.


Renato Shordon, CBRE’s deputy director of research and consultancy said in the wake of strong fluctuations in 2007, the demand for real estate in Hanoi are at its peak. This can be clearly shown in the high rental prices, high occupancy rates and big capital value in Hanoi’s market.


For the retail market, the rental price for a square metre at the centre of the capital is around US$125 per month. The average rental price for a square metre at trade centres in Hanoi reached more than US$60 per month.


Vincom City Towers Shopping Centre covers only an area of 30,000 square metres including a leasable retail area of 17,000 square metres. Meanwhile, Ciputra Mall which are under construction and expected to be completed by 2010, will provide the leasable retail area of up to130,000 square metres. Near The Manor and The Garden high-end apartments, another trade centre with the leasable retail area of 22,300 square metres will be put into operation by the end of 2008 or early 2009.


The leasing price for office space continues to increase. The price for a square metre of an A-level office has hit nearly US$43 per month and amounts to more than US$50 per month at locations in the centre of the city. The price for a square metre of a B-level office is around US$40 per month. In 2008, additional two B-level office buildings will be put into operation including Sun City Building (5,000 square metres) and Viet Tower (10,000 square metres).


One of the biggest real estate demands in Hanoi is accommodation, especially high-end apartments. Buyers are mostly residents and investors who want to buy for leasing purposes to meet the demand of foreigners working and living in Vietnam. According to CBRE, the huge demand for new projects will push the buying price to more than US$4,000 per square metre or even over US$5,000 per square metre. Currently, the housing price for a square metre is between US$1,600 and US$3,500. Many big buildings will be put into operation in 2008 and 2009 including

Park Lane
with two towers and 308 flats, Vinaconex/Vimeco with 750 flats and three buildings E1, E2, E3 as part of the Ciputra project with 500 flats. The Garden apartments will also be put into operation in 2009 with 170 flats and 98 percent of flats have been sold until now. Keangnam Hanoi Landmark Tower and the Landmark which are opposite the Daewoo hotel are expected to be completed by 2010/2011.


The market for high-end apartments for lease is relatively stable. The price for a square metre of a high-end flat in Hanoi is around US$30-45 per month, equivalent to the leasing level in other global markets. The completion of the Atlanta Residences building by the end of 2007 and Fraser suites in early 2008 have brought new sources of high-end apartments. Skyline, Somerset Hoa Binh and Golden Westlake are expected to make their debut in 2008 and 2009.


Regarding the market for hotels, the number of four-five star hotel rooms is still limited. The price of a five-star hotel room in Hanoi is around US$120-350 per night. Room occupancy rates are reaching roughly 82 percent. Currently, visitors to Hanoi often find difficult in find hotel rooms for rent. In the future, almost all new hotels will be located in the new centre of My Dinh and will be operational by 2010 to meet business demand.


According to CBRE’s analysis, Hanoi is now expanding to all directions with many development projects. For example, more than 200 new urban areas and a new centre is beginning to take shape. Most of the high-value projects will be implemented in the centre of the city and the new centre of My Dinh. The real estate market in Hanoi is attracting many foreign investment funds. Last year’s impressive events included groundbreaking ceremonies for the Keangnam Hanoi Landmark Tower project, the Garden, Crown Complex, the Landmark, and Ciputra Mall. CBRE forecast that the demand for real estate in Hanoi would remain high in 2008 and supply would not meet demand in the 2008-2009 period. Only after big projects become operational by 2010, would there be a balance between supply and demand.

Add new comment

Đăng ẩn
Tắt