Property transactions in Hanoi has started to pick up since the beginning of the year, indicating a change of direction for the languishing market, according to the Ministry of Construction.

According to the Xay dung (Construction) newspaper, 1,290 transactions were successfully completed in the first two months of the year, twice as many as the same period last year.
They included 820 social housing apartments and 470 commercial apartments.

The successful transactions were mostly for completed or nearly-completed apartments priced of 15-22 million VND (714-1,000 USD) per square metre.

A number of commercial developments located outside the city centre also attracted buyers with prices from 13-16 million VND per square metre and guarantees the projects would be completed on time and handed over as scheduled. They sold 100 apartments in the first two months of this year.

The increasing number of transactions was due to the efforts made by investors and agents to restructure developments and adjust prices, according to the ministry.

This month, new developments have also been released onto the market and are proving popular, including Starcity Le Van Luong, Mulberry Lane , Victory Van Phu and Xuan Phuong.

Hanoi 's property market expects the recovery to continue in the second and third quarters when developments are launched, such as Mipec Riverside, Berriver Long Bien, Golden Place , Golden Land , Eurowindow MultiComplex and Golden Silk.

Nguyen Manh Ha, head of the House Management and Real Estate Market Department under the Ministry of Construction, said the capital's property market had started to recover in early in 2013 as the inventory started to fall.

From January 1 to February 25 this year, the inventory fell by 2.8 percent against December 2013 and 23 percent against the same period last year. Empty properties were mainly located in areas far from the city centre without technical or social infrastructure, he said.

Many experts have noted that the interest rate cuts will lead to depositors moving their investments from savings to other assets with higher profits. While many money holders were looking for lucrative investment choices, the recovery in the real estate market has seemingly grabbed their attention.

Deputy Governor of the State Bank of Vietnam Nguyen Dong Tien remarked at a recent conference that besides the stock market, the real estate market will majorly benefit from the interest rate cuts in an ideal market.-VNA