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