A series of real estate projects have kicked off in the last days of 2009 since investors foresee the strong recovery of the real estate market in 2010.

In December alone, Hanoi’s real estate market saw nearly ten real estate projects begin. December 17 and 18 were considered “auspicious days” by real estate investors, so four projects kicked off at the same time (the Green House project, six 5-17 storey apartment blocs; the residential quarter in Viet Hung; The Grand Arena Hill, a resort complex in Ba Vi capitalized at $20 million; and the Nam Vinh Yen project, capitalized at 8,700 billion dong).

The Cleve high-grade apartment project began on December 18 and has been attracting special attention. With a huge investment capital of $660 million, the project will include 15 buildings and provide some 5,000 apartments when it opens.

Viglacera has launched a housing project comprising two 40-story blocks in Tu Liem, considered to be of the highest-ever quality, capitalized at 3,80 billion dong.

AZ real estate developer is completing procedures to start construction of the 10,000 square metre CT1 apartment project in Van Canh. Viglacera Land has announced that it would market some 200 low cost apartments in Dang Xa-Gia Lam early in 2010.

Market analysts observe that real estate developers are rushing to kick off projects by the end of the year to prepare for the recovering real estate market in 2010-2011. The Vietnam Report real estate predictions has made people believe that the market will recover in 2010-2011, with increased prices in 2011-2012.

Dang Thanh Tam, Chairman and Chief Executive Officer of the Kinh Bac Urban Development Company, said that when the market is quiet, it is a good time for enterprises to accumulate capital and build new projects to sell later, when the market warms up.

The year-end real estate market has become silent as investors arrange money to pay their debts. Tam believes that the quiet period is necessary next year’s second quarter recovery.

In principle, according to Tam, it takes at least one year to 18 months to complete construction. Therefore, wise investors have decided to begin projects now to be ready for when the market recovers.

Investors need to have medium and long-term goals to invest in the real estate sector. In 2008, many real estate projects began, but were delayed, leading to the short supply and high prices. According to CBRE, a real estate service provider, some 8,000 apartments were available in 2009, but only 3,000 were handed over.

Construction materials have become considerably more expensive over 2008. Steel prices have increased seven times. Cao Xuan Hai, Head of project development for Brand Vietnam and the contractor of the Cleve project, maintained that now is the best time to start a construction project before prices increase further.

VietNamNet/VNE