Land prices in Hai Phong soar

Since early 2010, land prices in new urban areas in the northern port city of Hai Phong have risen by 15-20 per cent on average due to development growth in many new urban areas, according to Nguyen Ngoc Thanh, chairman of the Hai Phong Real Estate Association

Thanh said investment in new projects had boosted the land value.

The real estate market in Hai Phong is unique because local residents prefer land to apartments and villas. result, land transactions account for 50 per cent of the property market.

Land prices had increased mostly in the city centre, Thanh said.

Last year, a 150 sq.m plot of land in the new urban area near Cat Bi Airport fetched between VND22 and VND25 million (US$1,047 – $1,190) per sq.m. Currently, the same plot is valued at between VND50-VND60 million ($2,380 – $2,857) per sq.m.

Investors are also rushing to buy land in areas with good infrastructure facilities, such as in Le Chan, Duong Kinh and Kien Thuy districts where prices have risen by 15 per cent compared to 2009.

An investor , Do Thi Hai told Viet Nam News that land prices had gone up because of new planned urban areas in Hai Phong.

Land prices in nearby Bac Song Cam and Gia resort in Thuy Nguyen District have also shot up.

In Tan Duong area, land along main roads costs between VND35 million ($1,666) and VND40 million ($1,904) per sq. m.

Land prices near Song Gia Resort Complex have increased by more than VND20 million per ($952) sq.m.

Most transactions involve the purchase of land worth VND500 million to VND1 billion ($23,809 – $47,619). Meanwhile, land for villas is in plentiful supply in new urban and resort areas. Typically, land for villas costs VND5 billion to VND7 billion ($238,000-$333,000) per plot.

Investors say land prices in Hai Phong are excessive and due to speculation.

However, Tran Van Thang, chairman of the Sao Do Investment JSC, said the real estate market in Hai Phong was more stable than in Ha Noi and HCM City because most investors in the port city raised their own capital and did not need to take out bank loans so theywere not affected by interest rate fluctuations.

Nguyen Van Kinh, director general of Hai Phong Trading and Construction JSC, said he did not believe the market in Hai Phong was overheated. However, he did say that some projects were proceeding too slowly. — VNS

Tags: Vietnam Property market, vietnam real estate market