Which real estate segment should you invest in in in Hanoi?
Sharing with Lao Dong, Mr. Nguyen Quoc Anh - Deputy General Director of Batdongsan.com.vn - said that the real estate market is recording signs of recovery after a period of many fluctuations in the period of 2022-2023. Notably, the apartment and private house segment in large cities such as Hanoi and Ho Chi Minh City is attracting investment cash flow again.
According to Mr. Quoc Anh, in recessionary cycles, investors tend to return to defensive segments, with little risk and that can be exploited for practical use. Apartments and private houses are types with lower price ranges than land, while bringing stable cash flow from exploitation for rent.
Instead of focusing entirely on land - which has low liquidity and high risk, experts recommend diversifying the portfolio.
"Residential land is still a safe investment channel, especially in areas with large real housing needs, in the context of a gradually improving rental market" - he commented.
Citing the report for the first quarter of 2025 of the Ministry of Construction, Mr. Quoc Anh said that apartment prices in Hanoi, Ho Chi Minh City, Da Nang and Hai Phong generally fluctuated little compared to the end of 2024. The price level is tending to stagnate, stagnate or adjust slightly in some areas. Accordingly, "surfing" apartments in the short term is not feasible. However, with a long-term vision of about 10 years, apartment prices can still double. Meanwhile, although land is likely to increase, it also has the potential to decrease sharply if the market fluctuates.
Investment strategy with capital of 1.5 billion VND
For investors with a financial capacity of about 1.5 billion VND, land in Hanoi is almost beyond reach.
"The price of land in alleys in many inner-city districts has exceeded 100 million VND/m2, while land on the street ranges from 300 - 400 million VND/m2. With a capital of 1.5 billion VND, investors will have difficulty if they do not use financial leverage or switch to the suburbs" - Mr. Nguyen Quoc Anh analyzed.
To optimize efficiency, he recommends that investors allocate capital reasonably, with more than 50% for stable products such as apartments or private houses; the remaining 10 - 20% can be invested in higher-risk channels such as land or stocks.
Accordingly, with 1.5 billion VND, buyers can consider a studio apartment or a 1-bedroom apartment in districts far from the center. In case of needing to borrow more, he said that the loan should be limited to about 500 million to 1 billion VND and it is necessary to carefully calculate the ability to repay the debt to avoid prolonged financial pressure.
If aiming at private houses, this expert believes that search should be expanded to suburban areas or border districts of Hanoi - where prices are still reasonable, under 30 million VND/m2, and have growth potential in the medium and long term.
In addition, the group investment trend was also mentioned by Mr. Nguyen Quoc Anh as a way to share risks and increase access to high-value products. However, the parties need to have a clear consensus on the capital contribution ratio, investment time and profit expectations to limit the risk of future disputes.
