Hanoi office market: Rents increase, demand moves

Hanoi office market: Rents increase, demand moves

Following the trend of moving from the center to the west of the city, according to Savills Vietnam's forecasts, the Grade A office market in Hanoi is likely to increase about 7% per year, within 2 -3 years. Demand trends also changed.

Grade A thirsty bow

The Hanoi office market in the last two years has maintained an average capacity of about 93%. In general, the Grade A office segment does not have many options except a new building is put into operation.

According to Savills, current Grade A buildings in the CBD are all old and lack modern facilities, and the infrastructure does not expand.

While the high-end office has a strong attraction to foreign tenants, interest in Grade A is expected to continue to increase amid strong developments in FDI and M&A. However, tenants in the central area, if they want to use a large area, they must divide floors and not have the same floor space.

Compared to TP. HCM and countries in Southeast Asia, Grade A office rents in Hanoi are at an average, with 42 USD (about 980,000 VND)/m2/month central area. Compared to the domestic market, Hanoi office ranked third in terms of rent and capacity.

The average rent for the whole office market is 31 USD (about 720,000 VND)/m2/month, Grade A rent in the central area is about 55 USD (about 1.3 million VND)/m2/month (included including service charge), the rent of Grade A outside the center is about 35 USD (about 815,000 VND)/m2/month.

Currently, the supply of Grade A apartments is modest, about 500.00 m2 of floors, out of 1.8 million m2 of floors, less than 20% of the area. The number of new buildings is not much. Recently, only Thai Holding Tower with a scale of 24,000m2 of floor provided the market.

Do Thu Hang, Head of Research and Consultancy Savills Hanoi, said that when the area and utilities integrated with Grade A offices in the CBD did not meet the needs of foreign tenants. Having been expanding investment in Vietnam, the supply and demand of Grade A offices has tended to move to the West. In recent years, this area has been considered the "capital" of the office market with many buildings such as KeangNam, Twin Tower...

Grade A office rents will increase 7% in the next 2-3 years.

According to a representative of Savills, the rental capacity in the western area of Hanoi has also been high. By this time, the Grade A office market in the west of the city has the opportunity to close the rent gap with the central office market.

For Grade B offices, Savills said that the average rent of the whole market reached USD 18 (about VND 420,000)/m2/month. Occupancy rate reaches 94-95%, the highest in the segment. The reason is that the total supply accounts for a large proportion, the new supply has remained stable.

Supply in the CBD in the near future is very limited, while in some urban districts and the west continue to have new supply from Capital Place project providing 94,000m2 floor to the market; Tay Ho area with Lotte Mall project is under construction, expected to be operational after 2021.

Ms. Hoang Nguyet Minh, Deputy Director of Commercial Leasing Department of Savills, said that demand for Grade B will remain high due to more affordable rents and reasonable office quality compared to rents.

Predicting the office market in the near future, Ms. Minh said that the central area continues to maintain the shortage of leased area and future supply. Tenants are moving from the old CBD area (Hoan Kiem) to new economic areas - inner city and west. The investor continues to hold the bargaining advantage. Most tenants sign a three-year contract and will soon expire. At that time, the tenant who wants to extend the contract will have to accept the price increase and restrict the right to negotiate the lease terms.

Rent will increase by 7%

In addition to the shift in supply from the CBD, according to Hang, the trend of demand and supply has changed.

Savills analysis shows that, from 2017-2019 tenants were the leading financial, banking and insurance businesses, followed by manufacturing, information technology, real estate, public administration... Currently, the trend of tenants is startup companies are on the rise.

The fastest change in demand, according to Hang, is the co-working space is accounting for 50% of the rental buildings. This can be considered a "transformation" of the Hanoi office market.

Ms. Hang said that currently tenants occupy over 1,000 m2, the number accounts for 10%, but they account for 95% of the floor area. From 2017 to the present, the ratio between Vietnamese and foreign tenants in the A&B segment has not changed much, accounting for 43% and 57%, respectively.

However, foreign tenants tend to prefer high-end spaces with higher rents. As of the first six months of 2019, 68% of the leased area in Grade A buildings is occupied by foreign tenants. Meanwhile, Grade B occupiers only accounted for 40%.

Regarding the future of Hanoi office real estate, Ms. Hang said that the working space at the central office buildings is limited, so the tenants continue to look to the West.

Sharing the same view, Ms. Minh said that, in terms of infrastructure, the central area is unlikely to be upgraded within the next ten years. Meanwhile, the development projects of the overhead train system, the upgrading and expansion of ring roads 2 and 3 are concentrated in the inner and western areas.

Regarding rental rates, representatives of Savills forecast that Grade A and B offices will continue to be vibrant. In which Grade A with limited supply in the center, customers will head to green buildings, have good utility services, integrate 4.0 technology, convenient transportation... so the price increase is about 7% within 2-3 years.

However, the highlight for the office market today, that is whether in the A or B segment, the new quality is something that can attract both domestic and foreign customers.

Recommendations for investors and customers, according to Savills experts, real estate businesses need to have specific studies, which areas are needed, and which locations can attract tenants. That is the problem that investors have to consider to achieve the highest rental efficiency.

According to Tam An

Hanoi auctioned land use rights of over 5,000 billion dong

Hanoi auctioned land use rights of over 5,000 billion dong

The City People's Committee said it submitted to the City People's Council to issue Resolutions for approving the list of projects on land acquisition, conversion of rice cultivation, protection and special-use forests in 2019. Based on that, completed to file land recovery, land lease, change the purpose of land use for 324 land areas, area 462.16 hectares.

Artwork image.

Up to now, Hanoi city has completed the approval of the 2019 land use plan of 30/30 districts, towns in accordance with the 2013 Land Law.

In 9 months, the city held a review, supplement and adjustment of the land use right auction plan in 2018 and the period 2018-2020 in the city with the total estimated auction price in 2019 after The adjusted amount is VND 15,900 billion. The result of auction of land use right has reached VND 5,058 billion, reaching 31.8% of the plan.

Regarding the problems of service land, the City People's Committee said that it has directed specialized agencies to work with the districts and districts that have problems to review and agree on implementation solutions. The total demand for translated land according to the whole city review is 64,068 households, equivalent to 725.87 hectares; The cumulative result of the whole city was 47,145 households, equivalent to 417.9 hectares, reaching 73.58%.

In the issue of land use right certificates, accumulated until now, the whole city of Hanoi has granted the first certificates to households and individuals in residential areas with 1,640,085 plots, reaching 99 , 6%; house buyers at housing development projects 203,319 apartments, reaching 91.24%; 13,668 house buyers resettled, accounting for 97.44%; households and individuals after land consolidation and exchange of agricultural land parcels 617,964, reaching 99.21%; religious and belief facilities 3,482 parcels of land, reaching 52.08%.

For the project of overall construction of cadastral records and land database in Hanoi, up to now, the city has implemented all bidding packages in 27 districts and towns; synchronously implemented measurement, digitization and editing of the map integrated with the construction of the land database in the city, striving to complete and put into operation the database. Data on land management in 2019.

According to Tam An

Hanoi apartment market: Optimism has returned

Hanoi apartment market: Optimism has returned

With over 23,000 apartments completed in the second half of 2019, the real estate market is showing quite exciting developments. Jones Lang LaSalle (JLL) expects that this segment in Hanoi will continue to grow steadily from now until the end of 2019.

Small area apartments sell well

According to JLL's assessment, in the third quarter of 2019, the oversupply demand showed that the optimism of buyers has returned to the market. Sales of apartments in Hanoi increased by 67% q-o-q, driven by real demand.

JLL said that in the same quarter, about 6,400 apartments were offered for sale, an increase of 8.7% QoQ. However, of them only 850 units came from four new projects. The high-end segment recorded only one new project, located in Tay Ho district with 32 apartments. The luxury segment did not receive new supply in the primary market this quarter.

Meanwhile, apartments with small area, low value recorded the best sales speed in the market. In addition, real estate in areas with synchronous facilities and infrastructure projects has also attracted great attention from both investors and buyers thanks to the potential for added value in the future and the convenience.

The oversupply demand shows that the optimism of buyers has returned to the apartment market.

The western part of the city leads the market in the number of apartments sold, an increase of four times compared to the previous quarter.

Primary market price reached 1,473 USD (about 34 million VND)/m2, increasing 3.5% QoQ. However, the selling price per project only increased slightly by 0.8% compared to the previous quarter. The reason is partly because the investor focused on clearing apartments with large area or obscured view still in inventory.

Notably, luxury apartment products recorded the highest increase (3.1% QoQ) in the secondary market, for projects with strategic locations and high quality construction.

JLL said that a number of new projects with a scale of more than 1,000 units are expected to be launched by the end of this year, focusing mainly in non-CBD areas with the presence of major investors such as Vingroup and BRG Group.

In the second half of 2019, approximately 23,100 apartments are expected to be completed, 93% of which have been successfully traded. This shows that the real estate market is still moving quite actively. Apartment price is expected to continue growing steadily from now until the end of 2019.
Rents for retail space will go sideways

Contrary to the optimistic sentiment in the apartment segment, the retail space market in the third quarter recorded a decline in the occupancy rate and leveling off of the supply.

Accordingly, in Q3, there was no new supply of retail space in the Hanoi market. Thanh Xuan and Hai Ba Trung districts continue to maintain the first and second positions in terms of total retail space, thanks to two major shopping centers in Royal City and Times City.

The third quarter recorded a decline in the occupancy rate and the slowdown of the supply of retail space.

In contrast, Hoan Kiem district, the center of Hanoi, is far ahead of the total retail supply. This trend will not change in the near future, as new shopping centers will often have large areas while Hoan Kiem district is short of land.

The occupancy rate in the third quarter decreased to 90.3%, as some shopping malls began to upgrade and change the strategy of selecting rental products as well as the removal of some key tenants, such as Auchan was closed at Mipec Riverside shopping center.

Retail properties investing in image and brand as well as a good rental strategy continue to record high occupancy rates, while some other centers are starting to struggle to retain tenants. Typical shopping centers such as AEON Mall, Vincom Metropolis, and Vincom Tran Duy Hung all operate efficiently and all have a vacant space of less than 5%.

The average rent of the market stayed at 29.3 USD (about 680,000 VND)/m2/month, equivalent to an increase of 2.8% year on year. Compared to the same period last year, department stores recorded the highest growth in rents, mainly because Lotte Department Store achieved good rents after renovations and upgrades.

In addition, rents in retail premises outside Hoan Kiem district, due to the fact that there is a modern commercial model, also increased by 3.4% year on year, showing consumers' preference for these models.

JLL predicts that rents will move sideways or still will increase, but not much, in the near future, thanks to the positive impact of the current economic situation on demand and purchasing power of consumers.

Hanoi retail market will receive a large amount of supply in the fourth quarter of this year and 2020.

“In an increasingly competitive market, developers will be under greater pressure to attract tenants. While new centers are expected to introduce compelling models to build an image with consumers, existing ones need to be constantly trying to keep up with market trends if they want to stay on top performance”, JLL said.

According to Tam An

Hanoi: Will the retail market "heat up" in the next 3 years?

Hanoi: Will the retail market "heat up" in the next 3 years?

According to CBRE's forecast, in the last quarter of 2019, the market is expected to welcome two new projects coming online, adding 88,400 m2 of retail to the market.

Including Aeon Mall Ha Dong and FLC Twin Towers. These two projects will further strengthen the leading position of Hanoi retail market supply in Dong Da - Ba Dinh area and the West.

Market in the CBD also recorded quite positive developments in the CBD. The asking price increased by 2.3% YoY and 1.1% QoQ, reaching 101.8 USD/m2/month. As there is no new supply expected to come online in this area in 2019, the average asking rent is expected to continue to grow positively, while vacancy rates remain low at less than 2%.

Compared to the same period last year, the market has received more than 90,000 sqm of retail from reputable developers and in good locations, contributing to the increase in the rent of non-CBD area.

The average rent in the region with the largest supply in the market - Dong Da - Ba Dinh and the West - reached 31.1 USD/m2/month in the third quarter of 2019, equivalent to an increase of 5.6% year on year. The vacancy rate in Dong Da - Ba Dinh and the West reached 8.4% in the quarter, equivalent to a decrease of 3.5 percentage points year-on-year but an increase of 0.1 percentage points QoQ. Similarly, other non-CBD rents increased 3.4% YoY and reached US $ 25/sqm/month while the vacancy rate increased 2.1 percentage points year-on-year, decreasing 1.5 percentage points QoQ and reached at 7.9%.

Artwork image.

In the next three years, Hanoi retail market is expected to be more active with new shopping centers in operation with regional scale (40,000 - 70,000 m2 of retail each shopping center). Two new Vincom shopping center projects are expected to come into operation (Vincom Megamall Ocean Park and Vincom Megamall Smart City), taking advantage of the demand from the two major urban projects in the East and the West.

Besides the big domestic company, Vincom Retail, foreign retail groups are also increasingly interested in the Hanoi market. Aeon Group also recently announced a new project of Aeon Mall Hoang Mai Shopping Center after the Aeon Mall Ha Dong project (expected to open in the fourth quarter of 2019).

CBRE said that these large-scale shopping malls are expected to be upgraded in design, product diversity and increase customer experience, thereby bringing many benefits to retailers seeking. opportunities outside the CBD - limited area of land as well as quality retail space. On the other hand, the distribution of large-scale shopping centers around Hanoi also creates certain challenges when the market does not form a concentrated shopping area.

According to CBRE, although not many new foreign brands entered the market in the third quarter of 2019, Hanoi in particular and Vietnam in general were still considered to be an attractive environment for foreign units, thanks to Economic growth and young population structure. Major international retailers such as Emart and Takashimaya have announced plans to invest in the Hanoi market, expected to start being available in the next three years.

According to Tam An

Hanoi: Condominium price increases, small serviced apartments take the throne

Hanoi: Condominium price increases, small serviced apartments take the throne

That is the judgment of Ms. Do Thu Hang, Director of Savills Hanoi Research and Consultancy Department, at a press conference in Hanoi real estate market in the afternoon of October 16.

Price of primary apartment increased by 3% year on year.

Apartment price increase

According to Savills statistics, the apartment market in Hanoi in the third quarter had 11 new projects and 9 old projects continued to implement the next phase, providing the market with about 8,100 apartments, increasing 23% quarterly and 17% year on year.

Primary stock decreased by 5% QoQ but increased 8% YoY to 29,700 units. Grade B segment continues to lead the supply with 67% market share. In particular, Gia Lam and Long Bien lead the number of apartments for sale.

Price of primary apartments increased 1% QoQ and 3% YoY. Grade A apartments have the highest year-on-year price increase of 18%, largely due to the high selling prices of newly launched projects. However, sales were down 1% QoQ but increased 50% YoY.

The eastern area of Hanoi had the highest number of units sold in the quarter with 40% market share. Ha Dong, Tu Liem, Thanh Xuan and Hai Ba Trung are still the most sold areas.

Regarding the issue of apartment prices, Ms. Hang said that the price of Q3 in the whole market is increasing, mainly in Grade C apartments from past projects. Projects with the price of VND 18-20 million/m2 still have room to increase prices. The Grade A segment mainly increased in new projects.

According to Savills, the Hanoi market still has many motivations for housing development, with a golden population and positive economic prospects. Hanoi has witnessed a population growth rate of 2.2% over the past decade, with about 120,000 children being born and 80,000-100,000 immigrants each year.

In particular, Vietnam's super-rich are expected to increase at a rate of 10% per year in the period of 2018-2023, the fourth highest in the world.

According to the 2019 global competition report, Vietnam is the country with the highest increase in the world. Vietnam is forecast to continue to maintain an annual economic growth rate of 7% in 2020 with GDP per capita reaching 10,400 USD by 2030.

For the year-end market forecast, the representative of Savills said that in Q4, the Hanoi market will have about 15,800 apartments from 10 current and future projects to be launched for sale. Future supply will expand from inner districts to suburban districts. Gia Lam and Dong Anh districts will provide a total of 30% of future supply.

Notably, from 2020 onwards, foreign investors including Sumitomo, CapitaLand and Mitsubishi Corporation will start offering projects.

Small serviced apartment, flexible rental price to the throne

According to Savills report, Grade A segment and branded projects continue to lead the market. Rental rates for branded projects are 19% higher than for other projects.

In the third quarter, the supply reached 4,330 units, down 8% QoQ, as the market only added one new project but two projects closed. This led to an increase of 4% in average rent on a quarterly basis and occupancy of 84%.

Ms. Hoang Dieu Trang, Senior Manager of Savills Vietnam Commercial Leasing Department, said that the serviced apartment market in Hanoi is showing clear changes in the area of apartments and the lease term, in the direction of Small area and more flexible rental period.

Statistics of this unit shows that, in 1996, the proportion of studios and one bedroom accounted for only 16%, by the quarter 3-2019, this figure was 46%. In addition, tenants are not only foreign experts and senior traders with long-term rental needs, but also MICE guests/tourists with short-term accommodation needs. By partnering with online travel agencies, more than 90% of serviced apartment managers meet monthly and daily rental demand instead of annual contracts.

Meanwhile, considering the role of FDI inflows and the impacts on the serviced apartment segment, Ms. Hang said that with US $ 6.1 billion of FDI capital attracted in the first nine months of the year, Hanoi is now keeping an important position in the investment map and serviced apartment segment will benefit.

According to U.S. Best Coutries to Invest In 2009 rankings New and World Report, Vietnam has increased from 23 th to 8 th in terms of investment attraction. In particular, the number of tourists, experts and workers coming to Hanoi in particular, Vietnam in general under the nationality of FDI has also changed and shifted. Countries with large FDI inflows to Vietnam also bring more tourists, experts and labor.

“Serviced apartments are always a good and stable segment. In Q4-2019, with the addition of four major projects expected to enter the market, providing approximately 1,000 additional apartments, this market will become more active. In particular, three management brands of international stature are expected to continue to be present in the market, showing the attractiveness of the serviced apartment segment in Hanoi in the eyes of foreign investors”, Ms. Trang forecast.

According to Tam An

Apartment price in Hanoi returned to the peak of 2011

Apartment price in Hanoi returned to the peak of 2011

The newly updated report of apartment price transaction index for apartment quarter III/2019 of Hanoi Department of Construction shows that Hanoi apartment price ground in nearly all districts has become about the peak of 2011.

Photo shutter

Specifically, compared to the original year of 2011, the average price level of mid-end and high-class apartments actually touched and slightly exceeded the peak level of 2011 from the beginning of the first quarter of 2018. Previously, in the fourth quarter of 2017, the average price level of the mid-end and high-end segment was only about 80-85% compared to the peak of 2011.

After skyrocketing at the end of 2017, the price level remained relatively stable, almost unchanged in the past 7 quarters, by the end of the third quarter of 2019.

According to Viet Duong

Hanoi set up a delegation to supervise the observance of law on construction planning

Hanoi set up a delegation to supervise the observance of law on construction planning

City People's Council. Hanoi has just issued a decision to set up a delegation to supervise the observance of the law on construction planning in the City.

The supervision mission is headed by Ms. Nguyen Thi Bich Ngoc, Deputy Secretary of City Party Committee, Chairwoman of City Council.

Accordingly, the City People's Council will oversee the rural construction planning in the city period 2008 - 2019, expected supervision for the City People's Committee, Department of Planning and Architecture, People's Committees of districts and communes.

The purpose of the monitoring mission is to review and evaluate the observance of law provisions in the rural construction planning work, including: the elaboration, evaluation, approval of plannings and organization of implementation, planning management, planning adjustment. Clarify the results, limitations, difficulties and problems, identify the causes and responsibilities of organizations and individuals in the implementation process. On that basis, proposing and proposing measures to overcome the shortcomings and limitations in order to ensure the effective implementation of the city's rural construction planning work.

According to Viet Duong

Hanoi established 3 industrial clusters in Dong Anh district

Hanoi established 3 industrial clusters in Dong Anh district

City People's Committee Hanoi has just issued 3 decisions to establish industrial clusters in Dong Anh district.

Specifically, Lien Ha 2 Industrial Cluster in Lien Ha Commune with a scale of 20 hectares, including the main activities: Wood processing, civil carpentry, fine art carving, lacquer... Total investment capital from VND 426.8 billion. Progress of investment in construction of technical infrastructure projects from the fourth quarter of 2019 to the fourth quarter of 2021.

Duc Tu industrial cluster, Duc Tu commune has an area of 15 hectares, with the main activities being: Wood processing, civil carpentry, fine art carving, lacquer... The total investment capital is about 336.8 billion dong. Progress of investment in construction of technical infrastructure projects from the fourth quarter of 2019 to the fourth quarter of 2021.

Thuy Lam industrial cluster, Thuy Lam commune has an area of 17 ha with main activities: Wood processing, civil carpentry, fine art carving, lacquer... The total investment capital is about 326,243 billion dong. Progress of investment in construction of technical infrastructure projects from the fourth quarter of 2019 to the fourth quarter of 2021.

According to Kim Duc

Real Estate Capital: The focus gradually shifted to the East

Real Estate Capital: The focus gradually shifted to the East

Western area after many years is the focus of the capital real estate market, so far, it seems that the interest is gradually shifting to the East.

Nhat Tan Bridge increases the possibility of connection between Dong Anh and the inner city of Hanoi. Photo: Shutterstock

Western Area - Waiting to absorb all available supply

Real estate in the west of Hanoi for many years has always been a navel to attract investment. In only about 5-6 years, the number of offices and apartments in this area increased rapidly, especially near the main roads and radial roads.

For a long time, the West has always dominated the supply of offices, terraced houses and apartments for the whole Hanoi market. It is not difficult to recognize familiar images in districts such as Cau Giay, Nam Tu Liem, Bac Tu Liem and Ha Dong, which are mushroom-like constructions, the whole area is like a great construction site.

In just the last 2 years, Cau Giay Park has been seen from all sides on three sides, except for the direction of Thanh Thai Street, but now it is almost 4 full of numerous works, from apartments to offices. In only about 2 years, when the project is completed and put into use, this park will be like a skylight of a complex of buildings surrounding it.

Similarly, in Mac Thai To street (Cau Giay district), in the last 2-3 years, apartment buildings and office buildings have been built concurrently and quickly. From the area with lots of free space, this area has also become unusually cramped. In particular, many internal roads have not been completed and cared for, so the inside of the projects look sluggish.

Western area after a long time of being absorbed in "plowing" by investors, so far, there has been a large amount of supply and it needs more time to absorb.

Eastern Area - Overcoming psychological anxiety

When the West is looking for more time to absorb the available supply, it is time for many developers to start looking for new investment areas. And it seems that the East, including Long Bien District, Gia Lam District, Dong Anh District as the girls reach the age of statistics, are starting to be noticed by the boys.

It is not difficult to name a number of condominium projects that have been implemented, there are projects entering the handover stage such as: AQH Riverside Apartment (Thuong Thanh Ward, Long Bien District), Binh Minh Garden Apartment (Ward) Thuong Thanh, Long Bien district), Him Lam New Star Thuong Thanh (Thuong Thanh ward, Long Bien district), HC Golden City Long Bien (Long Bien district), Le Grand Jardin Sai Dong luxury apartment building (Long Bien district) TSG Lotus Sai Dong (Viet Hung Ward, Long Bien District), Intracom Riverside Apartment (Vinh Ngoc Commune, Dong Anh District), Eurowindow River Park Urban Area (Dong Hoi Commune, Dong Anh District)...

MIK Home's Valencia Garden benefits from transportation infrastructure. Photo: Thanh Nguyen

According to Mr. Duong Duc Hien, Director of Savills Hanoi Housing Business Division, the Vietnamese saying "the most is sight, the second is river, the third is high way" of Vietnamese people have a lot of impacts on investors, making a difference. The difference in taste in real estate shopping compared to many countries. In developed countries, with good transport infrastructure, people prefer to stay away from the city, because then distance is no longer a problem, but the ecological environment is concerned. In Vietnam, this trend has also begun and urban areas such as Ecopark (Hung Yen) are gradually proving the level of success. It is also in line with the policy of developing satellite towns. This is also an opportunity for real estate in the suburbs, including the East of Hanoi.

According to a survey of the Real Estate Investment Newspaper, apartment projects in the East Hanoi area have good liquidity.

Mr. Tuan, a salesperson of the Northern Green Land, said his company is currently the exclusive distributor of TSG Lotus Sai Dong project. The project has been in the roof since July 2019, is currently finishing the apartment, preparing to paint the exterior in November 2019. The project has one completed shophouse lot, another is under construction. The project was launched in July and sold quite well, currently there are about 90/300 units with customers (investors sell in batches, not all).

Sharing the trend of customers, Mr. Tuan said, now, the psychology of crossing the river is gone. Hanoi has many existing bridges and the future will continue to have more bridges connecting the two banks of the Red River, plus the transport infrastructure of Long Bien is rapidly improving, so more and more people are interested in Long Bien real estate production. Currently, many customers who buy apartments of the project come from Hoang Mai and Thanh Tri areas.

"The most important thing is that the project has the price and location suitable to customer needs, especially near the workplace, the easier it is to sell", Mr. Tuan emphasized.

Movement of capital flows

Recognizing the potential of the market of Long Bien, Gia Lam and Dong Anh districts, Mr. Do Viet Chien, General Secretary of Vietnam Real Estate Association said that in the next 5 years, this will be a developed market. due to improved transport infrastructure. The spine axis of Nhat Tan Bridge to Noi Bai Airport connects both with the downtown area and connects to Road 5 to Hai Phong. Particularly, planning of Vo Nguyen Giap road has approved 1/500 plan.

According to Mr. Chien, the western market of Hanoi is only developed to My Dinh, later to the ring of 3.5, to Day river. However, in the future, the North Thang Long area will be an urban development trend in Hanoi. The development experience of the previous countries shows that the real estate market is directed to airports and seaports for economic development, so investors should pay attention to these locations for development. The Vo Nguyen Giap road connecting the airport to the inner city area is a good suggestion.

Sharing the same view, MIK Group leader said that centrifugal trend is the key and businesses will pursue. The peripheral areas are currently very well invested and large scale. There, businesses can build large-scale projects that serve multiple needs to buyers.

"In the near future, I believe that investors will try to deploy and create large urban areas", he said.

The potential of Eastern market is being woken up by some investors. Businesses such as Vingroup, Him Lam, MIK Group, Hai Phat, An Quy Hung, Cen Group... have implemented their projects here. Perhaps, the dizzy sales of projects like Valencia Garden has made many investors more confident. This project was developed from a previous period, when the sale was quickly owned by the owner after only a few months.

Referring to the Eastern Hanoi market, it is impossible not to mention the great smart city project of the consortium of BRG Group and Sumitomo Corporation (Japan). This project has been groundbreaking in early October and is expected to create a big push for the Dong Anh market in particular and the East in general.

Commenting on Dong Anh market and the effect from the above project, Do Van Anh, CBRE Hanoi Market Research Department, said that from 2019 and 2020, urban area projects will account for billions significant focus on apartment supply. This is a distinct feature compared to the previous period when developers developed many single housing projects. The smart city may open its first apartment sale in 2020 and will probably create new supply changes for the apartment segment across the Red River.

According to Ms. Van, the construction of bridges or Ring Road 2 has helped increase connectivity and infrastructure for the East, facilitating movement and connectivity so it has a positive impact on the transaction and price ground.

“Over the past 10 years, Hanoi has strongly developed the Western region, until recently it has started to develop strongly across the Red River. In particular, Dong Anh is a latecomer region, so the price level is still lower, so the prospect of price increase is also better than developed regions” Ms. Van emphasized.

According to Thanh Nguyen