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| Latest real estate. The project of the amusement park and auxiliary complex is located in a prime location but has been abandoned for many years. (Photo: Tran Khang). |
House in alley suddenly dropped in price by hundreds of millions of dong but still difficult to sell
Alley houses in Hanoi have always been a "popular" segment for many years. In particular, from 2021 to the end of 2022, this housing segment has continuously increased sharply, even equal to the price of adjacent houses in the suburbs if calculated by square meter price.
However, after going through a period of overheating, this segment is now showing signs of falling into a slump. Many homeowners have accepted to reduce the price by several hundred million VND per unit to quickly recover capital, but it is still difficult to find buyers.
According to a survey, currently, in Hoang Mai district, the price of houses in alleys in areas such as Dinh Cong, Linh Nam, Minh Khai... fluctuates between 90-130 million VND/m2.
Similarly, in Nam Tu Liem district, Me Tri, Phu Do, My Dinh areas... the price of houses in 2-3m wide alleys is being advertised for sale at 90-120 million VND/m2. The price of houses in 3m wide alleys in areas such as Xuan Phuong, Cau Dien, Tay Mo, Trung Van... ranges from 90-100 million VND/m2, while in 2-2.5m wide alleys the price ranges from 70-80 million VND/m2.
In Cau Giay district alone, if you want to own a house in an alley 30-35m2 wide, buyers need to spend from nearly 4 billion VND to more than 6 billion VND. Specifically, the price of a house in an alley 2-2.5m wide ranges from 125-150 million VND/m2, while a house in an alley 3m or more is 150-180 million VND/m2.
In fact, the current recorded prices have all decreased by about 10-15% compared to mid-2022. For example, a 41m2 house with 5 floors, 2.5m alley frontage in Me Tri, was put up for sale in November 2022 at a price of 5.4 billion VND, equivalent to nearly 132 million VND/m2. However, after half a year, the owner has not found a new owner and has adjusted the selling price many times. To date, the selling price of this house has dropped to 4.7 billion VND, equivalent to 114 million VND/m2.
The first quarter real estate market report of a market research unit shows that the level of interest and purchasing power for the Hanoi private housing market has decreased. Specifically, the level of interest in private housing in Cau Giay district has decreased by 22%, Dong Da district has decreased by 26%, Thanh Xuan district has decreased by 23%, Long Bien district has decreased by 11%...
The reason for this situation is recognized by investors and experts as being due to the high interest rates in recent times, the psychology of buyers is hesitant, continuing to wait for deeper price reductions, causing liquidity to decrease. Accordingly, although meeting the real needs of buyers, they still have to lower prices to find customers.
Surveys show that many houses in the alley have been for sale for half a year but have not found buyers. The reason is that the current interest rate is still at a high level, causing many people to hesitate in making a decision.
According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), the real estate market has been "inflated" higher than reality for many years. In the first quarters of the year, the market is forecast to have few fluctuations, and the number of transactions will continue to decrease compared to the same period in 2022.
"Customers are ready to spend money with the mentality of waiting to buy at the bottom, but whether the market has hit bottom is still a question that needs time to answer, because there is no measure to determine the bottom of the real estate market," said Mr. Dinh.
Hanoi terminates park project on "golden land"
On June 5, the Hanoi Department of Planning and Investment has just decided to terminate the investment project "Amusement park and auxiliary complex at 151, 153 Yen Phu street, Tay Ho district, Hanoi".
According to the Hanoi Department of Planning and Investment, this project has investment policy decision No. 2999 dated June 16, 2018 of the Hanoi People's Committee. The project investor is Hanoi Entertainment Services Investment and Development Company Limited. This project has the commercial name of Sanrio Hello Kitty World Hanoi Entertainment Complex.
The reason for the project termination is that the investor is not allowed to continue using the investment location and does not carry out the procedure to adjust the investment location within 6 months from the date of not being allowed to continue using the investment location.
Previously, the City People's Committee assigned the Department of Planning and Investment to review the documents and seek opinions from departments and branches on terminating the project of the amusement park and auxiliary complex at 151, 153 Yen Phu to ensure that no disputes, complaints or lawsuits arise in the future, and report to the City People's Committee for consideration and decision.
Hanoi People's Committee said that the investment project of the Office - Commercial, Restaurant and Entertainment Complex at 153 Yen Phu (Yen Phu Ward, Tay Ho District) with a total land area of about 2,678m2 was signed by the City People's Committee with Investment Policy Decision No. 5082 in September 2016, approving Hanoi Tourism Corporation - Company Limited as the investor.
However, in December 2017, the Board of Members of Hanoi Tourism Corporation - LLC issued Resolution No. 229 approving the policy of terminating the implementation of the above project and on December 14, 2017, Hanoi Tourism Corporation - LLC issued a document announcing the termination of the project.
On January 15, 2018, the Department of Planning and Investment issued Document No. 319 to the City People's Committee regarding the termination of the project implementation by Hanoi Tourism Corporation - LLC at location No. 153 Yen Phu Street, Tay Ho District.
On February 28, 2018, the City People's Committee issued Document No. 786 approving the proposal of the Department of Planning and Investment and the request of Hanoi Tourism Corporation - LLC. At the same time, assigning this Corporation to complete the liquidation procedures of the Office - Commercial - Service - Restaurant and Entertainment Complex project in accordance with current legal regulations.
The Hanoi People's Committee also said that on June 29, 2020, the City People's Committee issued Decision No. 2843 to reclaim 2,678m2 of land at 153 Yen Phu and hand it over to the Hanoi Land Fund Development Center for management according to regulations. On October 26, 2022, the Department of Planning and Investment sent a document to the City People's Committee reporting on the termination of the project of the Amusement Park and Auxiliary Complex at 151, 153 Yen Phu.
On November 16, 2022, the City People's Committee directed in Document No. 2162 to assign the Department of Planning and Investment to review the documents, consult with departments and branches on the termination of project activities, ensure that no disputes, complaints or lawsuits arise in the future, and report to the City People's Committee according to regulations.
According to records, the land plot for the Amusement Park and Auxiliary Complex project is located at 151-153 Yen Phu, a prime location in Hanoi. However, this land plot has been abandoned for many years, causing waste and loss of urban beauty.
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| Latest real estate: Design of Ring Road 3 - Ho Chi Minh City (Photo: Provided by the Management Board of Investment and Construction of Traffic Works). |
Dong Nai speeds up progress of 2 infrastructure projects worth over 92,800 billion VND
The construction progress of resettlement areas serving the Bien Hoa - Vung Tau expressway phase 1 is still slow, with the Ring Road 3 project - Ho Chi Minh City has issued a notice of land acquisition.
According to Dong Nai Province's Electronic Information Portal, local leaders have just chaired a meeting of the Steering Committee to implement the investment project to build the Bien Hoa - Vung Tau Expressway and the Ring Road 3 - Ho Chi Minh City section passing through the province.
Dong Nai Department of Transport reported that both projects are speeding up the completion of related procedures to ensure the projects start on schedule. Regarding the site clearance for Ring Road 3-HCMC, Nhon Trach District People's Committee has issued a notice to reclaim the project land.
Regarding the Bien Hoa - Vung Tau Expressway project phase 1, the Provincial People's Committee has decided to approve sub-component project 1. However, the construction progress of resettlement areas serving the project is currently slow, especially the 2 resettlement areas in Bien Hoa City.
Dong Nai provincial leaders requested Nhon Trach district to continue to quickly implement the site clearance for the Ring Road 3 - Ho Chi Minh City project. The area where the project groundbreaking ceremony will be held must complete site clearance before June 15.
For the Bien Hoa - Vung Tau Expressway project phase 1, the two localities, Bien Hoa City and Long Thanh District, accelerated the progress and completed the construction of resettlement areas. The Provincial Traffic Construction Investment Management Board completed the investment procedures to start the project.
The Ring Road 3 project in Ho Chi Minh City is expected to start construction on June 18, with an investment capital of more than VND75,000 billion. This route passes through 4 provinces and cities including Ho Chi Minh City, Dong Nai, Binh Duong and Long An, with a total length of 89km. The section through Dong Nai is more than 11km long, starting at Vinh Thanh commune, Nhon Trach district and ending at Nhon Trach bridge, connecting Thu Duc (Ho Chi Minh City).
The Bien Hoa - Vung Tau Expressway Phase 1 is scheduled to start construction on June 30, passing through Dong Nai and Ba Ria - Vung Tau with a total length of more than 53km. The total investment of the project is more than 17,800 billion VND from the central and local budgets. The project is divided into 3 component projects, in which the Dong Nai Provincial People's Committee is the investor of component project 1 with a length of 16km. The Ministry of Transport is the managing agency of component project 2 with a length of 18km in Dong Nai province and the remaining part of component project 3 is implemented by the Ba Ria - Vung Tau Provincial People's Committee.
Residential real estate transactions in Lam Dong are 50 times more than the project
The Department of Justice of Lam Dong province has just reported on the number of real estate transactions for sale through notarization and contracts in May 2023 in the province. The data was compiled by the Department of Justice from 34 registered notary organizations.
According to the report, in May 2023, in housing projects in Lam Dong, only 33 plots of land and 1 individual house were traded. Mainly concentrated in Bao Lam district, Bao Loc city and Dam Rong district.
In the existing residential area, there were 1,297 land plots and 172 individual houses transacted. Unlike projects, land plot transactions in existing residential areas came from all districts, the most was in Lam Ha district with 242 plots, the least was in Cat Tien district with 3 plots.
There is a big difference in transactions of individual houses in existing residential areas between localities. For example, Da Lat city has 58 transactions, Duc Trong district has 48 transactions or Bao Loc city has 32 transactions. Meanwhile, districts such as Dam Rong, Lac Duong, Da Teh or Cat Tien have no transactions.
Regarding the type of apartment, in May 2023, Lam Dong province had 12 apartments traded. All of these apartments are in Da Lat city.
Last month, Lam Dong province had 40 commercial and service premises and 1 office for lease transacted.
Compared to April 2023, the real estate transaction situation in projects and existing residential areas in Lam Dong has had positive changes.
Specifically, real estate transactions in projects increased by 5 products, while real estate transactions in existing residential areas increased by 175 products.
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