Hanoi (VNA) – Condominium property pricesremained fairly stable during the first half of 2018, with under 2 percent influctuations.

The country’s real estate inventory at present isestimated at approximately 24.3 trillion VND (1.07 billion USD), down 81percent from the peak of the property crisis in the first quarter of 2013 and4.29 percent from the end of 2017.

According to a report by the Ministry of Construction’sInstitute of Construction Economics, the average price of condominium units inHanoi during the first quarter of the year rose by 0.19 percent against thefinal quarter of 2017. The prices of luxury and low-end segments experiencedincreases of 0.33 percent and 0.84 percent, respectively, while those of mid-rangeprojects was down just 0.01 percent.

In the southern largest economic hub of Ho Chi Minh City,the condominium market recorded greater growth in terms of pricing than Hanoi.In the first three months of 2018, the average price of condominium unitsgained 1.24 percent from the previous quarter, with the high-end, mid-range,and budget projects up 0.41 percent, 1.53 percent, and 1.45 percent,respectively.

In the landed property market, the average price in Hanoiincreased by 1.13 percent from the end of last year, whereas in Ho Chi MinhCity, it went up 3.01 percent.

Land lot prices have been soaring in areas where newurban zones, industrial parks, or resorts are being developed or are about tobe set up like District 9, Cu Chi, and Can Gio districts in HCM City; Nha Trang– the capital city of Khanh Hoa province; and areas around the Long ThanhInternational Airport project in Dong Nai.

A similar trend has sprung up in Van Don (Quang Ninh),Van Phong (Khanh Hoa), and Phu Quoc (Kien Giang) where special economic zonesare planned, however this has come alongside an increase in illegal conversionsof forest and agricultural lands for other purposes.

According to property service provider CBRE, Vietnam’s foreign direct investment (FDI) – includingnewly registered capital, increased capital, capital contribution, and sharepurchase – reached a total of 20.3 billion USD between January and June thisyear, an increase of 5.7 percent year-on-year.

The real estate sector has attracted the second largestFDI injection with 5.54 billion USD, accounting for 27.3 percent of total FDIcoming in.

Hanoi was the country’s leader in FDI approvals in thefirst half of 2018, with 5.87 billion USD. The highlight of this period waswhen Japan-based Sumitomo Corp along with other local partners such as BRG wereapproved by the city’s People's Committee for a 4.13-billion USD smart city projectin Dong Anh district.

Lotte Group from the Republic of Korea also pledged toinvest 600 million USD in a high-end international standard complex, including shoppingcentres, office spaces, and hotels in Hanoi.-VNA