Here are ten insider tips for figuring out the Hanoi property industry. High-end real estate demand is expected to continue to grow strongly against Hanois limited supply. At present foreigners are permitted to own apartments in Hanoi or elsewhere in Vietnam Large local real estate firms and more international players are coming to the market, so for those with the capital, this is a segment to watch.
Companies have promised to fund 300 new projects in Vietnam, and expand 130 existing projects. That includes a $4.2 billion casino and tourism complex in Hanoi.
The Hanoi Tourism Department has revealed details of a range of big projects, and their locations are indicators of where future growth will occur. Among projects mooted are apartments in Tay Ho, apartments in Ciputra, the Thuong Thanh Hotel in Long Bien District, the Ta Thanh Oai Golf Course in Thanh Tri District and the Phu Dong Golf Course in Gia Lam District. In addition, the Hanoi Tourism Corporation has signed with foreign partners to build a horse racing course in Soc Son District.
Financing a unit is set to become easier as local banks will be permitted to give mortgages to those who qualify for condominium ownership. So, if gathering the cash for your apartment is an issue, Vietnam may be able to provide both the condo unit and the means to finance it.
Those considering buying into Hanoi should take a look at the citys western gateway district of Tu Liem. A number of high-profile projects are springing up in the area including the 36-storey mixed-use HABICO Tower which now under construction.
Vietnam has already attracted more than $15 billion in foreign investment; a figure over double the amount the country lured between January and May of last year. Such a healthy FDI rate, coupled with the proposed relaxation of foreign property laws, indicate that property market woes are very much temporary.
At present foreigners are permitted to own apartments in Hanoi or elsewhere in Vietnam, and both overseas Vietnamese and foreigners will be allowed to buy into condominium developments once they meet certain conditions.
As in HCMC, a large proportion of new units coming onto the Hanoi market over the next year or two will be mid and lower range the market dip has prompted many developers to switch their attention to the citys native middle-class who, with price reductions, are ready to get onto the property ladder.
Despite the negatives, Vietnam (along with China) has the biggest potential for capital growth in residential and commercial property over the next two years new research which surveyed a range of property experts has claimed. Hong Kong, Singapore and Thailand follow were beaten into third, fourth and fifth positions.
The city Peoples Committee is considering eco-tourism and entertainment resorts in various parts of the city; both of which will have a knock-on effect on property prices in their locales.