Land near the Red River dike is also offered a price of up to VND50-55 million sq.m, nearly double from before due to the Red River urban area planning. — Photo dantri.com.vn

Property prices in some areas of Ha Noi have surged strongly after reports on draft planning for the Red River urban area were released in June.

The Red River urban planning project aims to develop an area of ​​about 11,000 hectares in 13 districts including Dan Phuong, North Tu Liem, Tay Ho, Ba Dinh, Hoan Kiem, Hai Ba Trung, Hoang Mai, Thanh Tri, Thuong Tin, Me Linh, Dong Anh, Long Bien and Gia Lam.

Per the project, there will be dozens of bridges built across the Red River and many parks, and cultural, tourist, service and entertainment works, modern ecological urban areas will also be built on both sides of the Red River.

The plans have led to expectations that property prices in this area will increase strongly, especially after the planning is approved.

The trading of property in ​Cu Khoi Ward in Long Bien District has increased strongly, reported the Vietnam News Agency.

According to Nguyen Quang Huy - a real estate broker - the current price is VND68-70 million per sq.m for a house with one frontage and VND70-72 million per sq.m for a house with two fronts, higher than the previous price of VND40-50 million.

If this urban project is approved, the land price would increase further, even up to VND80-90 million, Huy said.

Le Thi Minh, from Cu Khoi Ward, said in the last two weeks, many people had come to ask about land in this area, causing land prices to rise. The price had increased by VND5-10 million per sq.m to VND37-40 million for a plot of land in Cu Khoi Street.

In some areas in Dong Anh District, land prices have also surged by about VND10-12 million per sq.m, especially in the area of ​​Tam Xa and Xuan Canh communes overlooking the Red River urban area, to VND28-30 million against prices from a month ago.

Land near the Red River dike is also offered a price of up to VND50-55 million sq.m, nearly double from before due to the Red River urban area planning, a broker said.

Land price prices have also increased in Hoai Duc District, including Vuon Cam urban area, near Van Canh University, Lideco North 32, Kim Chung-Di Trach, Ha Do Charm Villas and An Lac Symphony.

Of which, the strongest increase in land price is Kim Chung-Di Trach Urban Area, where the price was only about VND20-35 million per sq.m in mid-2020 and has jumped to VND40-70 million at present. This price is expected to surge to VND55-95 million due to good infrastructure.

In the Me Linh District, the property price has increased to VND15-30 million per sq.m since the beginning of 2021 in many projects, including Cienco5, AIC, Diamond Park View, Ha Phong, Hoang Van and Melinh Vista City projects.

According to real estate experts, there are two trends for property investment on the banks of the Red River, including swing trading and buying of land for compensation or higher price in the future.

Experts believe the rising property prices are due to information about infrastructure planning and investment.

In the area along the Red River, land brokers have been accused of price manipulation to push the property price up 2-3 times. If the planning project is approved, both landowners and brokers may continue to take this advantage to push prices upwards.

According to Nguyen Van Dinh, deputy general secretary of the Viet Nam Real Estate Association, the increase in land prices usually depends on the level of investment in infrastructure. If there is planning in principle or drawings, an increase of about 3-5 per cent is reasonable.

If the land price is too high, it will hinder the development of the real estate market in those areas.

Ha Quang Hung, deputy director of the Housing and Real Estate Market Management Department under the Ministry of Construction, said land prices had increased by 50 per cent compared to 2019 in some places in Hoai Duc District and 20-30 per cent year-on-year in the districts of Dong Anh, Gia Lam and Long Bien.

The strong increase of real estate prices in some areas of Ha Noi was mainly due to speculators taking advantage of real estate information to create price fluctuations, such as urban planning and investment policies for major infrastructure projects.

To stabilise the real estate market, the Ministry of Construction this year would build a mechanism to minimise the imbalance in the product structure of the market.

The ministry would also propose solutions to strengthen supervision of the market to reduce price manipulation. — VNS