Two things have happened recently in Vietnam that have instantly propelled the property markets of the capital city of Hanoi to higher scrutiny on the international scale. The first has to do with a speech made by government officials and the second has to do with plans by the government in construction.
Nguyen Thi Bich Van is the deputy director of the Foreign Investment Agency within Vietnam, and in a news conference yesterday, he laid out a number of priorities for the nation. One of those priorities was the development of infrastructure to ensure the steady flow of foreign capital into the country, and in particular, the development of high-tech properties and real estate to facilitate the demand that has been created across the world for properties in up and coming Asian real estate markets such as the one that is currently budding in Vietnam.
This speech came less than two weeks after announced plans by the Vietnam Ministry of Construction to expand the size of Hanoi and increase the city limits westward, building roads and infrastructure as they go. When that was announced on the 2nd of January, there was a flurry of activity on the part of private real estate firms as they bought up land west of the current city limits of Hanoi. Prices within the areas skirting the city have already gone up due to the announcement and it is expected that the speech by Nguyen will only reenergize buyers into obtaining more of the land and property west of the city of Hanoi.
Heavy industry and natural resource procurement were also high on the list of priorities in Nguyen's speech as the government will attempt to work with real estate firms to expand the property markets and create more supply on the back of an increased influx of raw materials to build with. With such attention being paid on the part of the government to the property markets in Hanoi, it is expected that the flurry of purchases of land in and around the city will continue for some time. Already, the increased demand has caused the price of some property rates to go up dramatically.
