Real Estate Prices in Downtown Hanoi to Climb by 21 Percent

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Dec. 14 – Land valuation in downtown Hanoi will increase by as much as 21 percent next year based on a new proposal submitted by the Hanoi People’s Committee.

The proposal sets next year’s prices for the city’s main commercial streets like Hang Ngang and Hang Dao in Hoan Kiem District at VND81 million (US$4,300) per square meter beginning January 1, 2010. The deputy chairman of the People’s Committee, Phi Thai Binh, told Vietnam Net that land valuations would be adjusted closer to the real market value.

City authorities have already lowered the land value of some outlying districts compared to the previous year while other parts of the city increased in prices because of improved infrastructure.

The Hanoi Department of Natural Resources and Environment said that the market value of land in areas near the inner districts or with key traffic systems has increased by 20 percent on average this year while some areas have doubled.

The government sets land valuations yearly for tax purposes and prices of real transactions are much higher than the official valuation. Out of the 2,890 streets in Hanoi, only 12 will have higher land valuations in 2010.

The most expensive land valuations can also be found at Dong Khoi, Nguyen Hue and Le Loi streets in the city center at VND81 million per square meter while farther locations like the Can Gio district will be priced at VND1.2 million per square meter.