Many land plots in Hanoi's Tay Ho District valued at around VND500 million per square metre are purposely left off that market by their owners, usually rich and successful types who can afford to wait until the market improves.
A land plot left unused
On a 100-square metre land plot on Yen Hoa Street, with a view of West Lake, is a tiny 10 square metre room which is dilapidated and surrounded by wild grass. Meanwhile, next to the plot are modern houses four to five floors tall.
A local resident said, "This land plot has been left unused in the 12 years that we've lived here. The owners sometimes stop by, but they don't really use it, and they don't want to lease it either."
According to 2012 statistics, 88 land plots owned by individuals and organisations in Tay Ho District are left idle. These plots were auctioned between 2004 and 2006, and attracted a large number of potential buyers.
At the prime time of the real estate market, a square metre of these plots was valued as high as VND350 million. However, over the past 10 years, many empty land plots in desirable areas have been left idle.
Similarly, a 200 square metre house on Dai Doan Ket Street, Hai Duong Province, which is highly appreciated for its location and value, has been left unused for four years.
The house owner has gone to Germany for business. Many people wanted to rent the house, but the owner refused, said a neighbour, adding that she, the neighbour, earns VND7 million for leasing a 20-square metre shop nearby.
The owner said her family will live in the house again in the next 10-15 years when they come back to Vietnam.
Several experts estimated that housing blocks in outlying districts like Tien Son in Bac Ninh and some in Soc Son and Me Linh districts in Hanoi may remain empty for the next five to ten years despite discounts of up to 50% in the context of the slump in the real estate market.