The apartment prices in some suburban districts of Ha Noi such as Hoai Duc and Gia Lam have been pushed up to VND30 million per sq.m. — Photo cafeland.com

The Ha Noi People’s Committee has approved the outline for the capital city’s housing development programme for 2021-2030, with vision to 2040.

Accordingly, the authorities will conduct surveys and assessments regarding the current situation of commercial housing, social housing, resettlement housing, official residence and private housing in urban and rural areas. It will set goals for housing development and make forecasts on the demand for housing among social welfare beneficiaries.

The programme will identify local demand for houses and land areas to build different types of housing in the city and links between housing and urban development, among other things.

Ha Noi hopes to build a system of suitable solutions to ensure sustainable, modern, and climate change-adaptive housing development, as a basis for the management and implementation of related projects, investment attraction, and the healthy growth of the real estate sector.

Recently, in the report on residential real estate outlook 2021, the SSI experts said that the price trend of Ha Noi's real estate in 2021 will continue thanks to enhancing investment in infrastructure.

The SSI expects that disbursement of the investment will be accelerated in 2021, creating a more positive sentiment for the market. The disbursement of capital from the Ministry of Transport reached VND35.6 trillion in 2020, up 44 per cent year on year and is expected to reach VND46 trillion in 2021, up 28 per cent year on year.

Besides putting metro lines into operation, according to SSI, the continuous improvement of the inner city road system and the transportation system to suburban districts will positively affect the land price and push the demand for real estate up, cafef.vn reported. Especially, the Western region of Ha Noi has a series of large infrastructure projects to be completed, including the ring route 3.5 and the transport network connecting To Huu Street with the My Dinh area.

In addition, an increase of 45 per cent in steel prices to a record level also continues to push input costs up, leading to the price of new apartments, shophouses, townhouses and villas up.

Specifically, the price of steel accounts for about 28 per cent of the construction cost for a new apartment and about 35 per cent for a shophouse, townhouse, or villa. Thus, the increase in the price of steel by 40 per cent has made selling price surge from VND2 billion to VND2.16 billion for a 100-sq.m apartment in the mid-end segment and from VND10 billion to VND11.1 billion for a 100-sq.m townhouse.

With the development of traffic infrastructure and higher steel price, housing prices in Ha Noi are expected to increase due to lower supply in the apartment, shophouses, villas and townhouses.

Specifically, according to the Ha Noi Department of Construction, in the first quarter of 2021, Ha Noi had a supply of 5,658 apartments and 1,404 low-rise houses. That supply was 36.8 per cent of that offered in the same period of 2020.

According to experts, until the end of 2022, the market may have new supply of housing because the land fund is scarce and implementation of projects slows down due to administrative procedures. Therefore, the prices continue to increase, especially in the West of Ha Noi with strongly developed infrastructure.

Now, the housing prices in Ha Noi stand at new levels. For instance, the price of a luxury apartment is at VND40-60 million per sq.m, from VND35-45 million three years ago.

The apartment prices in some suburban districts such as Hoai Duc and Gia Lam have been also pushed up to VND30 million per sq.m. For the low-rise shophouse and villa segment in Ha Dong, Nam Tu Liem and My Dinh areas, the prices have also increased by about 40-50 per cent from VND180-200 million per sq.m three years ago to VND300 million. — VNS