Old Quarter land prices remain high

27 Jun
Prices of “golden” lands in Ha Noi’s Old Quarter remain exorbitant despite the recent freeze in the real estate market, said industry insiders.

At a recent bid organized by the Ha Noi Natural Resources and Environment Department’s Ha Noi Housing Management and Development Company, a square metre of land of a house on 48 Hang Bong Street, Hoan Kiem District, was recorded at VND506 million (US$30,600).

Similarly, a house on 120 Hang Bong Street is being advertised for sale for VND342 million ($20,700) per sq.m.

A property broker in Ha Noi said that while real estate transactions nationwide were stagnant, investors are still interested in buying property in Old Quarter’s streets like Hang Ngang, Hang Dao, Hang Bong and Nha Tho or those along West Lake at prices of roughly VND450 million ($27,200).

Land in streets like Ly Thuong Kiet, Tran Hung Dao and Phan Chu Trinh, known as “foreigners streets”, were advertising sales at roughly VND250 to 300 million per square metre while prices of properties in riversides of West River and Bay Mau River were fluctuating around VND150 to 200 million, said the broker.

Brokers said interested investors were mainly overseas Vietnamese from European countries as well as locals who have made a lot of money in the stock market.

Despite the high prices, potential buyers believe that the land is a sound investment, saying that they could sell it for even higher prices or rent it out.

Besides the financial aspect of it, investors also believed that lands in the Old Quarter were the most valuable in the future because of their cultural value and irrespective of the capital’s expansion.

General director of the real estate Century Group, Nguyen Trung Vu, argued that the expansion of the capital would not affect the high demand for land in the Old Quarter. No new land can replace the favoured ones in the inner city, said Vu.

However, brokers said that for land to be truly considered “golden” to investors, the area must be between 400sq.m to 1,000sq.m, if not more as it needs to be used for the construction of office buildings, high end apartments or commercial complexes.

Source: Vietnam News
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