Hanoi real estate investors marching towards the central region

As real estate prices in Hanoi become “toweringly high”, many investors in Hanoi think that they should no longer limit themselves to local investments, and Da Nang in the central region has become their new destination.

Though the price of land in Da Nang has been escalating, the city remains an attractive location for real estate investors. The coastal villas and coastal land plots along the “golden” land strip of Son Tra-Dien Ngoc that links Da Nang and Cua Dai sea in Quang Nam province are being hunted by the wealthiest millionaires.

Coastal land areas attract investors

An officer at Cuong Hung Thinh real estate trading floor, one of the biggest trading floors in Da Nang, said that the small land plots in the coastal areas and along Han River have been attracting many investors, especially from Hanoi. The investors are drawn to the high profitability from the land, about 30 percent after three quarters of investment.

Nguyen Thi A, who lives on Le Trong Tan street in Hanoi, related that in late April 2010, she purchased a plot of land for a big project on the east bank of Han River at 5.5 million dong per square meters. In early December, A decided to sell the plot of land at 8 million dong per square meter for other investments .

Especially, the prices of real estate in coastal areas have been rapidly escalating. In June 2010, the land on Nguyen Tat Thanh road, near My Khe sea was priced at 10 million dong per square meter. However, the price has jumped to 15 million dong per square meter. Now it is nearly impossible to buy land in the area because landlords do not want to sell at a time when prices are expected to rise further.

Meanwhile, the prices of land plots near the central areas of the city, the square and the public beach, have also increased from 30 million dong per square meter four months ago to over 40 million dong now.

The prices of land plots on Son Tra – Dien Ngoc route are escalating everyday. According to Nguyen Thanh Son, an investor from Hanoi, since the prices of land in the central areas have become higher, investors tend to seek less expensive areas. Therefore, the contiguous areas between Da Nang City and Quang Nam province, where land prices are lower, at 5-10 million dong per square meter, have caught the eyes of investors.

Now investors are hunting for land plots in resettlement areas located on advantageous positions near Son Tra-Dien Ngoc road. The land plots here are located near public beaches and high-end resorts. “The biggest advantage of the land plots is that the they all have a “red book “ (the land use right certificates), on which people are allowed to build high-rise buildings. Meanwhile the prices remain reasonable at 5-7 million dong per square meter.

Multi-million dollar villas also targeted

While the investors who do not have much money, are eyeing the land plots with reasonable prices, wealthier investors are targeting high-end villas.

Deputy Director of Cuong Hung Thinh real estate trading floor said that 5-star resorts, such as Ocean Villa invested by VinaCapital, Hyatt by Indochine land, or The Sun Villa and Vinpearl Da Nang have been specifically attracting investors. A large volume of coastal villas has been launched onto the market with a sale price relatively high at over one million dollar, but despite the price there have been many successful transactions reported.

According to CBRE Vietnam, a real estate service provider, by the third quarter of 2010, Da Nang had had 29 high end apartment-villa projects under construction along the Truong Sa coastal route. The launching of the 15 villas by Dune Residence and 39 villas by Vinpearl Da Nang has heated up the market.

CBRE believes that the strong development of infrastructure and the market diversification of the city both have brought a specific attractiveness to Da Nang. It is estimated that 80 percent of investors come from Hanoi and HCM City. – Vietnamnet

Tags: Hanoi real estate market