Houses in Hanoi alleys are still unsold despite price reduction, project activities on 'golden land' are terminated, transactions are bustling in Da Lat

Houses in alleys in Hanoi have fallen in price but are still difficult to sell, the project of a park on "golden land" near West Lake has ended, real estate transactions in residential areas in Lam Dong are 50 times more than the project... are the latest real estate news.

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 a period of rapid growth, this segment has now shown signs of slowing down. Many homeowners have agreed 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, and 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, you 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.

A market research unit's first quarter real estate market report shows that the level of interest and purchasing power in 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 considered by investors and experts to be that in recent times, interest rates have been high, buyers are hesitant, and continue to wait for deeper price reductions, causing liquidity to decline. Accordingly, although the real needs of buyers are met, prices still have to be lowered to find customers.

A survey shows 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 rates are still high, causing many people to hesitate in making a decision.

According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (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 transaction volume will continue to decrease compared to the same period in 2022.

"Customers are already putting money down 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 procedures to adjust the investment location within 6 months from the date of no longer 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 ask for opinions from departments and branches on terminating the project of the amusement park complex and auxiliary works at 151 and 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 - Trade, restaurant service and entertainment complex at 153 Yen Phu (Yen Phu ward, Tay Ho district) with a total land area of about 2,678 square meters 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 regulations of law.

The Hanoi People's Committee also informed that on June 29, 2020, the City People's Committee issued Decision No. 2843 to reclaim 2,678 square meters 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 issued a document reporting to the City People's Committee on the termination of the project of the Amusement Park Complex and Auxiliary 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 the 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 and Recreational Park 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.

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

Construction progress of resettlement areas serving 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 reclamation.

According to the Dong Nai Province 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 - Ho Chi Minh City, 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 province leaders requested Nhon Trach district to continue to quickly implement the site clearance for the Ring Road 3 project - Ho Chi Minh City. The area where the 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 the 16km-long component project 1. The Ministry of Transport is the managing agency of the 2nd component project with a length of 18km in Dong Nai province and the remaining part of the 3rd component project 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 plots of land and 172 individual houses transacted. Unlike projects, land 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 the number of 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 apartment type, in May 2023, there were 12 apartments traded in Lam Dong province. 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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