Updated  
February, 15 2014 09:12:00

Buyers snub suburbia, opt for city apartments

Analysts expect the local property market to fare better in 2014.— Photo ktdt

HA NOI (VNS)— Ha Noi's apartment market is gaining traction because of lower prices, but sales in faraway suburbs are still tepid due to the depressed socio-geographic features of these areas.

Analysts expect the local property market to fare better in 2014. In the first weeks of the year, the liquidity in the real estate market, especially for apartments, has increased.

The inventory level has declined almost 25 per cent compared to the first quarter of 2013. Several real estate transactions in the centres of Ha Dong and Linh Dam experienced a large increase in the number of customers seeking to buy apartments and houses costing between VND1 billion and VND2 billion (US$47,420-94,840).

"Given that many projects offer cheap apartments, it's not easy to attract clients if their locations do not have convenient transport systems and handy social facilities," the Ha Noi Land Company's Director Nguyen Dinh Tung told the Viet Nam Education newspaper.

"Location is the key element that will decide capital inflows into the property market this year. It influences every market segment, including high-end apartments, commercial apartments, villas, terraced apartments, etc," Tung added.

Nguyen Van Phuc, a new resident in the Sai Dong apartment area, 8 kilometres away from the Hoan Kiem District, said, " I wouldn't move further away from the heart of the city. We need schools nearby for our young children, hospitals and the like for easier daily life. A cheap apartment located far from these facilities is a big no-no to me."

Do Thi Hai, a city retail investor, noted, "It may be fine to buy an apartment in the suburbs, which is about an hour's drive from the city centre, to take advantage of the current low prices. However, I do not consider it a residential area today."

Low-cost housing in the city is currently mainly found in the Dang Xa 2 project in the Gia Lam District, the Sai Dong-Rice City Song Hong project in the Long Bien District and the Tay Mo-North Co Nhue project in the Tu Liem District.

Mid-priced apartment buildings, including Kim Van-Kim Lu, Van Phu-Victoria and Trung Van-Vinacones 3, are also attracting the attention of buyers.

CBRE in January said sales volume will increase if prices are reasonable, the products meet the demand of the market and the construction goes well.

The Ha Noi Department of Construction predicted that the prices of apartments will be stable this year, especially because of a series of social housing projects and small and medium-sized housing construction projects, which will increase the supply of real estate. — VNS

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