The project covers an area of approximately 16,600 sq.m at 239 Xuan Thuy Street, Cau Giay District and is scheduled for completion in 2010.

The project includes grade A office space and two high-rise residential towers, able to house approximately 325 families. As well as numerous amenities, the project will provide a school and daycare centre with an attached secure children’s outdoor play area, IPH apartments are expected to be put on sale at the end of the first quarter of 2009.

The Vietnamese real estate market was facing rough times, but urbanisation was still in the early stages so investors were still interested, said Peter Ryder, CEO of Indochina Capital.

"Currently, the stock market is gloomy due to the global financial crisis. The dollar and gold markets prove unattractive as prices fluctuate all the time. So it is timely to return to the real estate market".

Viet Nam’s cities were also still underdeveloped and needed investment to develop their infrastructure, Ryder said. "We are of the view that the property market in Viet Nam offers lucrative opportunities despite volatile prices, which would explain why half of $47 billion in FDI was pumped into property development projects in Viet Nam over the last eight months."

Ryder said some sectors of the real estate market in Viet Nam’s capital had cooled recently as a result of the global economic crisis, high inflation and increased interest rates. However, the prospects for long - and medium-term development in the real estate market in Ha Noi and other Vietnamese major cities was still positive, with improved economic indicators likely to boost the market.

"The land prices in Ha Noi’s central area remain stable, while prices in other areas have reduced since the first quarter of this year. In addition, those who have a real demand for accommodation can now easily access real estate products, as the market is no longer distorted by speculation as it was several years ago," he said.