Hanoi (VNA) – The real estatemarket in Hanoi is becoming a magnet for foreign investors, with the number ofexperts and entrepreneurs from abroad working in the capital city rising.

Market insiders said western and northern areasof Hanoi are attracting foreign investors. Notably, more and more customersfrom the Republic of Korea, Japan, Malaysia and Singapore are seeking to buy orrent high-end apartments in the west of the city.

Nguyen Phuc Thanh, an experienced investor,explained that the western side accommodates the headquarters of manyministries, sectors and major domestic and foreign businesses. It is also hometo key facilities such as the Vietnam National Convention Centre and theNational Sports Complex.

Additionally, transport infrastructure in thearea is relatively modern and convenient for accessing inner areas and mainroads to other provinces and cities, he noted.

Insiders also said the western area, includingthe My Dinh area, will remain a top destination for foreigners. Moreimportantly, these clients have high requirements for property products,especially accompanying services, a boon for investors with high-end projects.

Meanwhile, the northern area has its ownattractiveness in the high-end segment.

Nguyen Bich Trang, Director of CBRE Hanoi, saidthe north of Hanoi, even on the other end of the Nhat Tan Bridge, are developingstrongly. In the next five to seven years, new residential areas will be builthere and change the city’s real estate market, particularly mid- and high-endsegments.

The higher development potential of high-endproperty in the north, compared to other areas, is thanks to certain geographicaladvantages, she said.

Echoing the view, Le Manh Cuong, a division headat the municipal Department of Planning and Architecture, said location is key forproperty value. Most big cities in the world also expand towards rivers orairports, and very few have developed away from them.

This is why residential projects in the south ofHanoi like Hoa Lac or Xuan Mai were not as successful as expected. Meanwhile,although many projects in the north, particularly on the other side of the RedRiver, are just in the planning stage, they have attracted attention fromforeign investors and clients, he noted.

Statistics show that more than 82,000 foreignerslive and work in Vietnam, and a large amount of them are in Hanoi.

According to a report of HSBC Vietnam, 29percent of foreign experts working in the country said they were ready to spendtheir savings on house purchases. They are among the 30-percent potentialbuyers of high-end apartments and the two-percent potential buyers of luxuryproperty.

The revised Law on housing, taking effect in2015, has created more favourable conditions for foreigners to buy houses inVietnam. More open policies to attract foreign investment have also enhancedthe attractiveness of Hanoi’s real estate.

Experts said granting permission for foreignersto purchase housing is expected to encourage more types of real estate likeinvestment, tourism and service property. This is beneficial to the economy, inline with international practices and a form of “exporting” property on site.

Commenting on the local real estate market,Director of Ciputra Group Budiarsa Sastrawinata said Hanoi is a potentialmarket for big projects of different property types.

A recent big investment is a smart city projectin Hai Boi and Vinh Ngoc communes of Dong Anh district. Implemented by aJapanese firm and a Vietnamese partner, it has total investment of more than4.1 billion USD and is set to begin construction this October. It is one of thebiggest foreign-invested projects in Hanoi in the first half of 2018.

According to the Ministry of Planning andInvestment, foreign investors poured 5.9 billion USD into Vietnamese realestate between January and August, accounting for 24.2 percent of totalregistered foreign capital. That gave property second place among the 17sectors receiving foreign investment during the period.

Hanoi was the biggest destination of the capitalinflow, attracting 5.93 billion USD or 24.4 percent of the total.–VNA