Hanoi approves 14 residential projects amid market challenges
The fourth quarter would see increasing supply of new apartments, with around 9,700 units to get launched.
Hanoi will list 12,260 apartments from 14 housing projects of different segments namely villas, shophouses, luxury housing, and social housing, according to the city's Department of Construction.
| High-rise buildings in Dong Anh District. Photo: Thanh Hai/ The Hanoi Times |
The new developments include the Lang Village low-rise office and residential complex in Dong Da District; the Southwest Me Tri Residential Area in Nam Tu Liem District; the CT-05 and CT-06 social housing towers in the Thanh Lam - Dai Thinh 2 Urban Area in Me Linh District, and the Van Xuan Commercial Housing Area in Bac Tu Liem District.
Other projects are the Green Street commercial terraced housing project in Gia Lam District; the Tay Mo - Dai Mo - Vinhomes Park Urban Area in Nam Tu Liem District; and the Sunshine Crystal River project in Phase 3 of the Nam Thang Long Urban Area in Tay Ho District.
The HUD-Son Tay Urban Area will have a low-rise project while the Dong Anh District will have a project along with the high-end Van Thuan - Tay Thang Long project in Bac Tu Liem District.
However, many real estate projects in Hanoi are running behind schedule despite heavy investment by developers, wasting land and financial resources and contributing to rising prices, according to the Department of Construction.
Hanoi currently has 404 housing projects facing obstacles, with 158 already addressed and efforts underway for 246 others. The city has not approved any new projects in the past three years. To date, Hanoi has achieved only 9% of its goal of developing one million social housing units.
In 2024, the share of rental housing in new social housing projects is expected to reach 30%. Most of the housing supply comes from projects approved in earlier phases.
Meanwhile, real estate prices jumped significantly between 2022 and 2023, outpacing income growth for most residents, especially in the mid-range and luxury apartment segments.
Vo Nguyen Phong, Director of Hanoi's Department of Construction, said the city currently has 56 social housing projects underway for the 2021-2025 period, which are expected to provide about three million square meters of floor space when completed.
However, the progress on five social housing projects in Gia Lam District (one project), Thanh Tri District (one project), and Dong Anh District (three projects) is delayed.
In the fourth quarter, some 9,700 new homes are expected to come on the market, mainly in the mid- and luxury segments, with prices rising slightly. This will bring the total for 2024 to nearly 30,000 units, nearly triple the amount in 2023 and the highest supply in the past five years.
According to local insiders, the majority of available apartments will be in the mid-range and luxury categories, while affordable apartments remain few. With the introduction of new laws such as the Land Law, the Real Estate Business Law and the Bidding Law, the real estate market is expected to see more stable and transparent development in the future.
