According to the Vietnam Association of Realtors (VARS), in the past 3 years, from 2021 to present, the price increase rate of real estate in the West of Hanoi is 7-15% higher than other areas on average. Along with that, the Real Estate Market Report for 2022 and 2023 of VARS also recorded many consecutive quarters that apartments in the West of Hanoi dominated in terms of supply and transactions.
In the third quarter of 2023, the number of newly launched apartments in the West accounted for nearly 62% of the total supply. From the fourth quarter of 2023 to the end of the second quarter of 2024, the West of Hanoi continues to be the most vibrant real estate area in Hanoi.
In particular, the low-rise segment along the 3.5 and 4 belt axes continuously establishes new price levels. Actual surveys show that the prices of villas and townhouses in Hoai Duc, Dan Phuong, and Ha Dong have increased by 30-50% compared to more than a year ago. Currently, many low-rise projects have reached the threshold of 300 million VND/m2 (Source: WTO)
Even in some potential areas, brokers have "re-emerged" and are operating strongly, the number of interested customers has increased sharply, and there has been a local price fever. In fact, the increase in the low-rise segment in the West is 5-10% stronger than in other areas. Brokers commented: Without at least 30 billion VND in hand, it is very difficult to find potential products in this area.
Explaining the most vibrant real estate market in the Western region of the Capital, according to experts, there are two main reasons.
Ms. Do Cam Nhung - owner of a brokerage office in Hanoi, said that the biggest reason is that this area has a breakthrough in both planning and infrastructure.
“The remarkable development of infrastructure in the Western region has created a strong growth pole for the Western real estate market in general in the past 10 years and the next 10 years. Because according to the orientation to 2050, the Western region will have two more affiliated cities: Hoa Lac Science & Training City and Tourism City in Son Tay - Ba Vi area.” – Ms. Nhung informed.
According to Ms. Do Thu Hang, Senior Director of Research and Consulting at Savills Hanoi, the important reason for the escalation in the transfer price of adjacent villas in the West from now until the end of 2024 is due to limited new supply and high primary price levels. Specifically, the primary supply in the second quarter was only over 600 units, down 9% quarter-on-quarter and 24% year-on-year. Due to limited supply, the selling price of adjacent villas and villas also increased by 2-9%, respectively VND188 and VND178 million per square meter.
“In the context of the real estate market lacking investment products, low interest rates for a long time have caused investors to seek opportunities in the villa and townhouse market. In that context, the scarce supply has caused the price of villas and townhouses to increase. The market is showing signs of being much more vibrant than in the previous period. Many projects that have been opened for sale have achieved very positive liquidity because they immediately attracted the available demand of the market,” Ms. Hang commented.
In addition, the attraction of real estate in this area is greater when in a short time, the Western region quickly attracted large real estate developers with smart urban area projects and iconic real estate works. For example, the Construction Trade Corporation (WTO) with the Hinode Royal Park urban area project (Kim Chung - Di Trach urban area) owns the most prominent adjacent subdivisions - shophouses, villas in the West of Hanoi.
In addition to the "golden" location in the West of the Capital, the low-rise subdivisions at Hinode Royal Park attract investors because the selling price is still at the "bottom" and the investment is methodical and standard.
According to the investor's introduction, the project is oriented towards "all in one" planning, including types of commercial townhouses, garden houses, single villas, twin villas, integrated with a system of high-class utilities. High-class entertainment areas interspersed with central parks, internal parks, green landscapes... bring residents peaceful moments of relaxation, recharging energy after a long busy day.
