A ban on the use of apartments as commercial offices in large cities and provinces has quickly led to market reactions that signal possible major changes to come.
Right after the Ministry of Construction’s (MoC) order was released to Hanoi, Ho Chi Minh City, Thanh Hoa, Hai Phong, Da nang and Nghe An a few days ago, office leasing prices have started to climb.
The market has reacted strongly against MoC's ban
Nguyen Lan Huong, owner of a small office building on Nguyen Phong Sac Street said she had raised the leasing price of her building by US$1,000 to US$5,000 within a week after the ban.
Le Hoang, a property investor, said he was selling some apartments that he owned to invest in the offices market because prices were increasing rapidly.
Real estate trading business in Cau Giay, Thanh Xuan and Ba Dinh districts have also seen their office transactions soaring.
“Office leasing prices had been increased by VND5 million (US$278) to VND10 million (US$556) per month on average after the MoC’s decision was announced,” said Xuan Tan, director of a real estate company.
One of the reasons for MoC’s move was that “Offices inside apartment buildings may cause noise and disorder, affecting residents’ living.” But DTiNews’ observation has shown that this is often not the case.
A majority of opinions that we gathered from residents and office renters in major buildings in My Dinh, Trung Yen, Trung Hoa – Nhan Chinh and Dich Vong in Hanoi were against the decision.
