Land in Hanoi old quarters as expensive as gold

A report by the Gachvang real estate trading floor shows that the price of land and houses in old quarters in Hanoi has increased by 20-40% compared with earlier this year.

Dao Duy Tu street has seen the sharpest price increase. There were transactions at the beginning of the year which reported a price of VND360 million per square meter, which later soared to VND574 million, or 52%.

Meanwhile, according to VnExpress, some other properties on the street are for sale at hundreds of millions of dong per square meter, much higher than the other properties.

Hanoi Old Quarter, comprising 36 streets, is located in the center of the city, near Hoan Kiem Lake, the heart of the capital city.

This is called ‘Pho Tay cua Hanoi’ (Hanoi’s quarter for westerners, which attracts many tourists) to differentiate with HCMC’s quarter for westerners called Bui Vien.

Hoang, a real estate broker, said he had been authorized to sell an 8-storey hotel on Dao Duy Tu street at VND700 million per square meter.

He said that hotels in the area were very pricey because there were favorable conditions for business. The hotel is always full of guests and has been running very well.

“If you take over the hotel, you will have income of hundreds of millions of dong a month,” Hoang said.

As for other properties on the same street, the prices will be lower, about VND300-360 million per square meter, because they are just for accommodations, not for businesses like the hotel Hoang.

The report of Gachvang also shows that the prices of houses on some pedestrian streets in Pho Tay area have increased by 20-40%.

Le Anh Son, director of Phu Tai Real Estate Trading Floor, said in the past, there were very few transactions at the price of VND1 billion per square meter. But such transactions are now commonly seen.

He went on to say that people are now hunting for the houses on Bao Khanh street, which is also near Hoan Kiem Lake. Since it is not in ‘old quarters’, it is easier to ask for permission to build new houses there than in old quarters.

The selling price has reportedly hit the VND1.07 billion per square meter, up by 21.6% over the beginning of the year.