Buying property in Hanoi
In 2007 the estimated capital injection into the Vietnamese property market reached US$5bn, mainly foreign direct investment (FDI). The British Virgin Islands for example invested almost $2.7 billion in Vietnam, while Singapore pledged $2.2 billion.
The increasing interest in the city meant property prices in Hanoi tripled from 2006-07. In 2006 new apartments in Hanoi were being snapped up for $80,000 but by the summer of 2007 this rocketed to $240,000.
Although the first months of 2008 were not the best for the city’s property market, the more long term pattern is consistent, often exponential growth in property prices. Hanoi’s hotel and tourism market is developing rapidly, boosted by ever-increasing numbers of foreign visitors being carted into the country by more and more budget airlines like AsiaAir, Jetstar and Tiger Airlines.
The Hanoi People’s Committee has given the nod to three five-star hotel projects in addition to five newly-licensed world-class hotels, with a total investment of US$1.2 billion. According to the Ha Noi Tourism Department, the three projects include the Marriot hotel, close to the My Dinh International Convention Centre, by the Bitexco Company, a hotel-office-villa complex on Doi Can Street in Ba Dinh District, and a hotel-office project on Tran Vu Street in Tay Ho District, by a company under the National Administration of Tourism.
Tourism breeds residents, and the serviced apartment market in the city has been bursting at the seems. The hitherto restrictive Vietnamese laws which at present, bar foreigners from owning property has contributed to limited supply and high rents (about $19 to $50 per sqm a month).
However, the government’s promise to open up ownership laws to foreigners under certain conditions as and from 2009 should see a large proportion of those living in serviced apartments turn condo buyers. This should help put a nervy 2008 to bed and return Hanoi to its previous growth pattern.
Top tips for Hanoi property
Guide to buying condos in Hanoi
Guide to buying houses and land in Hanoi
Guide to real estate in Hanoi
