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Hanoi approves outline of 2021-2030 housing development strategy

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The apartment prices in some suburban districts of Hanoi such as Hoai Duc and Gia Lam have been pushed up to 30 million dong ($1,300) per square metre. SUPPLIED/VIET NAM NEWS

Hanoi approves outline of 2021-2030 housing development strategy

The Hanoi People’s Committee has approved the outline for the Vietnamese capital’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.

Hanoi 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 a report on the residential real estate outlook for 2021, SSI experts said the price trend of Hanoi’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 35.6 trillion dong ($1.55 billion) last year, up 44 per cent year-on-year and is expected to reach 46 trillion dong in 2021, up 28 per cent year-on-year.

Besides putting metro lines into operation, according to the 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. The western region of Hanoi, especially, 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, a 40 per cent increase in the price of steel has made the selling price surge from two billion to 2.16 billion dong for a 100sqm apartment in the mid-end segment and from 10 billion to 11.1 billion for a 100sqm townhouse.

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

Specifically, according to the Hanoi Department of Construction, in the first quarter of this year, the Vietnamese capital 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 next year, 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 Hanoi with strongly developed infrastructure.

Now, the housing prices in Hanoi stand at new levels. For instance, the price of a luxury apartment is at 40-60 million dong per square metre, from 35-45 million dong three years ago.

The apartment prices in some suburban districts such as Hoai Duc and Gia Lam have been also pushed up to 30 million dong per square metre. 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 180-200 million dong per square metre three years ago to 300 million dong.

VIET NAM NEWS/ASIA NEWS NETWORK

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