The construction of the Ring Road No.3.5 running from Thang Long Highway to National Highway No.32 has just started, bringing many potentials to the real estate market in the west of Hanoi.
The Ring Road No.3.5 starting to be constructed in October 2017 is an important project connecting the north and the south of Hong river and creating a belt in the west of Hanoi.
There will be four interchanges including intersections with Thang Long Highway, the existing National Railway, To Huu street and National Road No.6.
The 5.6-kilometre project has a total investment of approximately VND1 trillion (roughly US$44.1 million). The first phase of the project has completed the site clearance and is ready for construction to go into operation after next 10 months.
The Ring Road No.3.5 is expected to create a new wave of investment, expanding the real estate market in the west and the north of the capital.
In addition, improvements in transportation infrastructure will also stimulate real estate businesses to continue investing in the area.
A float for super projects
While transportation projects have not been implemented, the real estate market in the west of the extended Hanoi has been established.
There will be a series of large projects nearby the Ring Road No.3.5 taking advantage of the convenient transportation system, especially in the context that these projects faced liquidity obstacles in the past.
One of the must-mention projects in this area is the Splendora An Khanh New Urban area invested equally by the Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex) and POSCO Engineering & Construction, a South Korea-based corporation.
Currently, the project’s phase 1 covering an area of 50 hectares and having 1,049 terraced houses, villas, apartments and other technical and social infrastructure has been completed and put into operation.
The second phase of the project was planned to be constructed in mid-2012; however, due to the disagreement between investors, the project had been suspended for a long time.
Till June 2017, Vinaconex started to implement the construction of the luxury Lakeside Villa project including 77 three-storey high-end villas on an area of 22,000 square meters. This is a part of Splendora’s second phase.
The Ring Road No.3.5
On the secondary market, villas and terraced houses in the Splendora project are suffering a dramatic drop in prices. Many investors are offering about VND3-5 billion (roughly US$132.3-220.5) per unit of the difference in prices while it used to be tens of billion dong.
This is because the offered villas and houses are finished with the large area, forcing people to spend billions to tens of billions dong to own each apartment.
In addition, people have quite resisted in purchasing houses in the project as it is located in the west of Hanoi and quite far from the center of the city.
The Ring Road No.3.5 is also expected to “open a road” for the Orange Garden project of the Vina Pool Construction Trading Company Limited. The 50ha project has over 600 villas and a 30-storey twin tower including more than 500 high-end apartments. With a total investment of over VND3,000 billion (roughly US$132.3 million), the project is expected to create a closed community with 7,000 residents.
However, the prices of properties at this project are falling dramatically after nearly 10-year suspension. Half a decade ago, villa lands in the project were sold at very high prices, about over VND40 million (roughly US$1,764) per square meter which has been reduced to VND11.5-15 million (roughly US$507-661). The dream of a modern new urban seems to be very far to reach.
While other districts such as Ha Dong, Thanh Xuan, Nam Tu Liem, Bac Tu Liem prosper with a series of high-end and middle-end apartment projects, the real estate market in Hoai Duc district has its own "wave" with the main product line being cheap commercial apartments.
Hoai Duc currently has the largest apartment supply in Hanoi. Particularly, at the Ring Road No.3.5, there are also a series of low-cost housing projects such as CT Number One, Van Canh New Urban Area.
These projects are aimed at medium income customers with the price ranging from VND10-15 million (roughly US$441-661) per square meter.
In the coming time when the Ring Road No.3.5 is completed, the real estate market in this area is expected to be stimulated to develop.
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