Vietnam - Prices of villa and adjacent land decline further by 20pct: Savills

Savills Vietnam's recently-released report on Hanoi's real estate market in the first quarter of 2012 showed that the prices of villa and adjacent land declined further by 20 percent from the last quarter of 2011.

The supply for the Hanoi's secondary market of villas and adjacent included about 40,000 apartments from 117 projects, of which, 93 projects would provide products in the form of purchase contracts while 24 remaining projects would trade under the capital contribution contract form.

The projects with purchase contracts would offer about 27,300 apartments with about 60 percent in region 2 (including districts of Ha Dong, Hoai Duc, Me Linh, Dan Phuong and Quoc Oai).

Projects with capital contribution contracts would provide 12,700 apartments with only 2 percent in region 1 (including districts of Hoang Mai, Tu Liem, Cau Giay, Long Bien, Tay Ho, Gia Lam, Thanh Tri, Hai Ba Trung and Thanh Xuan).

Especially, according to survey of Savills, in districts of Cau Giay, Tay Ho and Tu Liem, the ground land segment has the highest secondary price, at over 120 million dong per square metre and districts of Hoai Duc and Dan Phuong have the lowest secondary prices at less than 40 million dong per square metre.

In Hoai Duc district, Hanoi, there are now about 40 urban zone projects with large areas of from tens to few dozens to several hundreds of hectares such as North An Khanh urban zone project (renamed to Splendora project over one year ago).

This project with an investment of over $2.5 billion invested by Vinaconex Co and Posco E & C Group has a land area of over 264 hectares. North An Khanh project covers an area of nearly 300 hectares. Kim Chung-Di Trach new urban zone project invested by Vietracimex Trading Joint Stock Co has an area of over 170 hectares.

These are all projects with convenient locations and transportation infrastructure so they attract so much attention from investors so far.

Currently, the common prices of projects such as Kim Chung-Di Trach with large road (33 m) are at 38-40 million dong/m2 and small road at 28-30 million dong/m2 excluding crude construction.

North National Highway No 32 urban zone project has adjacent price of 45 million dong/m2, including crude building, adjacent price at New Tay Do urban zone is at 33 million dong/m2, and adjacent house at Van Canh project is at about 38-40 million dong/m2 including raw construction.

In Thang Long Boulevard, adjacent price of South An Khanh project is offering popularly at 26-28 million dong/m2, villas at 23 million dong/m2 excluding raw construction and adjacent price at Geleximco project is ranging between 33 million dong and 37 million dong per square metre.

VNA

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