Hoai Duc made headlines last week for auctioning off a 113-square-meter land lot for over VND15 billion, unusually high for land in the suburb.
But three kilometers away lies Son Dong Center, an urban area project where 150 townhouses were built and remain mostly unoccupied for years. Photos by VnExpress/Pham Chieu
A unit there costs VND100-180 million per square meter, meaning a house can cost around VND15 billion.
A small number are leased as offices or retail businesses.
The project struggles to find residents despite the developer’s claim it is located in a prime area near key infrastructure planned for the city such as the Ring Road 4.
Right next door is an urban area with 650 villas and 130 townhouses. Construction began in 2007 and was partly completed over 10 years ago.
Though the project, by property developer Lideo, has entertainment and shopping facilities and schools, many units are vacant.
Prices vary between VND100 million and VND125 million per square meter, up 20% from last year. This means the most expensive unit can cost VND37 billion.
Huu Tuan, a local property investor, says prices there have gone up so much that people with genuine demand for housing cannot afford them.
Many people bought these properties for speculation, he says.
Just furniture and interior design for one of the townhouses or villas there can cost VND3 billion, enough to buy an apartment in downtown Hanoi, he points out.
Another project nearby was approved in 2008 but left mostly undeveloped until 2021 when Vietracimex restarted it with a new name, Hinode Royal Park.
Part of the project has been completed, but many of the townhouses and villas there are unoccupied. The few that are occupied are mostly leased by property brokers.
A townhouse costs VND11.5-16 billion, while a villa can go up to VND27 billion.
Another project known as Orange Garden has 600 villas and townhouses, each measuring 200-800 square meters.
After 15 years of development the project is mostly completed but again has few occupants.
An Lac Symphony was approved in 2007 but the main construction only began in 2020.
Houses here look modern but still fail to attract residents. Barbed wire fences are put up to prevent illegal occupants.
Also in Hoai Duc District is Nam An Khanh, a project with among the most unoccupied units. It has nearly 1,800 townhouses and villas.
It was approved in 2006 but delays in getting permits and financial difficulties prevented development until 2015.
Many parts are still incomplete even now. Some units are used as brokerage offices, restaurants and coffee shops.
Property analyst Dang Hung Vo says 70% of units in many urban areas are bought by speculators, not people with demand for housing.
This explains why thousands of units in Hoai Duc have remained unoccupied for years, he says. Speculators who bought them years ago are still waiting for the right time to sell, he says.
Increasing speculation has pushed property prices way past levels affordable for most people, he adds.
