It was reported that guests attending the event had to register with sales agents or brokers to receive a QR code for check-in. Each QR code was assigned to one guest only. Attendees were required to bring a refundable deposit slip and their ID card or passport.
Crowds of customers at the Lumi Prestige booking event.
It is unclear whether the number of reservations was accurate, but according to information from brokers and representatives of some trading floors, as of July 7th, there were over 2,000 bookings, but only about 900 units were available, leaving many sales agents unable to secure a unit for their clients.
According to a broker, customers who booked a unit at the event would receive a gift of 200 million VND (around 8,500 USD) deducted from the selling price when they made a refundable deposit of 100 million VND (around 4,250 USD) and were given priority in choosing their unit. In addition, the developer offered several payment plans with different discount rates.
Various payment options and discounts were introduced to customers at the event.
Ms. Ngan (from Thanh Xuan, Hanoi), who is considering investing in this project, shared: “The broker advised that the sales contract is expected to be signed in the fourth quarter of 2024. By the time of signing, I will have paid 20% of the apartment value, including 5% when signing the deposit agreement after the booking fee is settled, and 15% when signing the sales contract. Subsequently, I will pay an additional 5% every quarter for the next six quarters, totaling 30% until the expected delivery date in the fourth quarter of 2026. At the time of handover in the first quarter of 2027, I will pay 45%, and the remaining 5% will be due when the pink book (land title) is received.”
According to Ms. Ngan, the broker introduced this particular section of the Lumi Ha Noi project at a starting price of 69 million VND (around 2,900 USD) per square meter. This price level is considered high compared to the average price in the Tay Mo – Dai Mo area bordering Hoai Duc district, where, two years ago, the average price was around 30 million VND (around 1,275 USD) per square meter.
Lumi Prestige, a subdivision within the Lumi Hanoi project, is being developed by CapitaLand Development in Tay Mo ward, Nam Tu Liem district, Hanoi. This subdivision offers approximately 898 apartments with a variety of layouts.
The total expected investment in the Lumi Hanoi project is around 18 trillion VND (over 760 million USD). With a land area of nearly 5.6 hectares, the project broke ground in the fourth quarter of 2023 and is expected to be completed by the third quarter of 2026. The project will be implemented in multiple phases, providing nearly 4,000 apartments across nine towers ranging from 29 to 35 stories.
Crowds of customers at the Lumi Prestige booking event on July 7th.
Previously, on April 20th, the launch event for the Lumi Hanoi project at the National Convention Center also attracted a large number of attendees, with 5,000 customers, 2,000 consultants, and 200 procedure staff present.
Image from the Lumi Hanoi project launch event in April.
Regarding the Lumi project, in March, social media platforms were abuzz with advertisements about collecting booking fees from customers for the Lumi Hanoi project, even though the project’s foundation had not yet been completed.
Following this information, the Inspectorate of the Department of Construction, in coordination with the Housing Development Division and the People’s Committee of Nam Tu Liem district, worked with the investor to clarify the issues of capital mobilization and legal procedures for the project.
The Hanoi Department of Construction stated that at that time, they had not received any documents or dossiers from the investor requesting confirmation of future housing at the Lumi Hanoi project. Therefore, the Department had not issued any documents confirming future housing in accordance with Article 55 of the 2014 Law on Real Estate Business.
Furthermore, the Hanoi Department of Construction had not received any documents or dossiers from the investor requesting capital mobilization in accordance with Clause 3, Article 19 of Decree 99/2015/ND-CP dated October 20, 2015, of the Government, for the Lumi Hanoi project. As a result, the investor was not permitted to sell future housing or mobilize capital without meeting the necessary conditions, nor were they allowed to authorize real estate exchanges to offer and receive deposits from customers.
It is worth noting that since the beginning of 2024 until April, apartment prices in Hanoi have seen significant increases, with some areas experiencing price hikes of 50-100% over the past two years. The market cooled down in May and June as prices peaked and exceeded purchasing power. However, starting in July, the segment heated up again as new projects were launched with higher prices. In some cases, projects located outside the Ring Road 3 area have not yet been officially launched but are already advertised at extremely high prices.
Mr. Nguyen Quoc Khanh, Vice Chairman of VARS, attributed the continuous rise in apartment prices in Hanoi partly to the market’s scarcity of supply and the mindset of many investors who believe that prices will continue to climb. According to Mr. Khanh, apartment prices are currently much higher than their actual value, and with the current construction costs, projects in the mid-range and high-end segments in the aforementioned areas should be priced at around 40-50 million VND (1,690 – 2,100 USD) per square meter. The high prices are partly due to the projects being bought and sold among multiple investors, which increases land costs and procedural expenses. In recent years, the number of approved and commenced projects has been very limited, which has also contributed to the surge in apartment prices to tens of millions of VND per square meter compared to previous years.
To lower apartment prices, Mr. Khanh recommended expediting project approvals, shortening the time for land access, and diversifying investors to create a competitive environment. Facilitating direct land access for investors would increase supply and help curb prices.
