Construction of Ring Road 4 begins, will the real estate market 'survive'?

Recently, the Ring Road 4 of the Capital Region officially started construction and is expected to be basically completed in 2026 and put into operation from 2027. It is known that Ring Road 4 has a total investment of nearly 86,000 billion VND, passing through 3 localities: Hanoi, Hung Yen and Bac Ninh.

According to some real estate brokers, thanks to infrastructure, the real estate market in some areas where Ring Road 4 passes through will be “hot”. In fact, right after the news of the groundbreaking, real estate in some places immediately became active.

Illustration by him. (Source: DP)

Mr. Do The Anh, leader of a real estate trading floor in Me Linh, said: The real estate market in this area has been "frozen" for nearly a year now, with transactions being slow. However, thanks to the launch of Ring Road 4, the number of investors "inquiring" is increasing. Some investors who found a satisfactory "shopping cart" immediately poured money in.

Mr. The Anh shared that although the price of Me Linh land has decreased in the past, it was pushed up too high, so investors are currently just waiting to see what the market has to offer.

According to Batdongsan.com.vn, by June 2023, in Me Linh area and some urban areas such as Ha Phong, Cienco 5... land prices in beautiful locations tend to decrease by about 15% compared to the peak, commonly fluctuating between 45 - 55 million VND/m2.

According to experts, the construction of Ring Road 4 will bring positive signals to real estate, although the market will be "hot" but difficult to "feverish".

Mr. Vu Cuong Quyet, General Director of Dat Xanh Mien Bac Real Estate and Services Joint Stock Company, said that the belt road has high connectivity not only to Hanoi but also to inter-provincial areas such as connecting with Bac Ninh, Bac Giang, Hung Yen...

Projects around Ring Road 3 are almost full, while the population is growing rapidly, the number of immigrants to Hanoi is also quite large, so the growth prospect of real estate around Ring Road 4 is very large, but it is very difficult for prices to increase sharply, it depends on infrastructure development.

"The current market context is quite quiet, real estate prices on Ring Road 4 have increased sharply in the past, the current investor psychology is to look for safe products, so it is difficult for the market to have waves at this time. In the next 2-3 years, when Ring Road 4 is completed, real estate in this area can increase and stabilize", Mr. Quyet predicted.

According to Mr. Nguyen The Diep, Vice President of Hanoi Real Estate Club, this is an opportunity for investors and large real estate enterprises. Despite the difficult real estate market, for some large enterprises with strategic vision and stable capital, this is the ideal time to develop projects around the area of ​​Ring Road 4.

"When a few businesses join the "race", the infrastructure of that area will develop, leading to an increase in real estate prices. Along with that, other businesses will also "follow suit", pushing areas with beautiful locations around Ring Road 4 into "hot spots" for real estate in Hanoi and the provinces where the projects pass through," Mr. Diep commented.

Mr. Diep also predicted that the market still has a huge demand for housing and investment, so recovery is only a matter of time, especially when the infrastructure in that area develops synchronously. In particular, the revised Land Law and the policy mechanism have many favorable points that will help the real estate prices along the 4th Ring Road increase again. It is even possible to establish a new price level in the eastern and western areas of the city.

Source: https://www.congluan.vn/khoi-cong-duong-vanh-dai-4-thi-truong-bat-dong-san-lieu-co-day-song-post255677.html