After a period of strong growth and then entering the adjustment phase, the Hanoi real estate market is showing clear changes in both development trends and investor tastes.
According to Mr. Le Dinh Chung - General Director of SGO Homes, Hanoi's real estate market is entering a new development cycle with four main growth axes including East, West, South and North. In which, the West still plays the role of a traditional growth pole after more than 20 years of strong development. However, land funds in this area are increasingly limited, while the price level has been high.
In the East, this area has emerged in the last 5-7 years thanks to the formation of a series of large urban areas and the development process of Gia Lam, Dong Anh and Van Giang. According to Mr. Chung, real estate prices in many eastern areas have now exceeded the threshold of 100 million VND/m2.
Notably, the North is assessed to be entering a breakthrough phase when converging many new growth drivers. Transport infrastructure is continuously invested, the Red River bridge system is being promoted and deployed, along with the advantage of connecting with Noi Bai airport and strategic highways, opening up great development potential for the entire region.
In the context that real estate prices in many northern areas are still significantly lower than in long-developed areas, Mr. Le Dinh Chung believes that this will be a potential destination for medium and long-term investment capital in the new cycle of the Hanoi market.
From another perspective, Mr. Nguyen Van Long - Deputy General Director of Mai Viet Land - said that although the real estate market is showing signs of stagnation after a period of strong growth, the inner-city segment of Hanoi still maintains its heat thanks to real housing demand and stable rental exploitation capacity.
According to Mr. Long, the investment trend in the market is changing clearly as investors no longer chase short-term price increases but prioritize assets that can create sustainable cash flow.
Projects located in the central area or urban areas that have formed residential communities continue to record positive interest thanks to their rental exploitation capacity and high liquidity. This is considered a product group suitable for investors looking for safety and steady cash flow in the context of the market increasingly emphasizing real value.
However, according to Mr. Nguyen Van Long, if considered from a long-term growth perspective, greater opportunities are in the suburban areas of Hanoi. The strong development of transport infrastructure, the process of expanding urban space and the trend of population migration are creating significant price increase room for areas such as Hoai Duc, An Khanh and the gateway areas of the Capital.
Accordingly, in the new market cycle, inner-city real estate is considered an effective channel for creating cash flow, while the suburbs will be the focus of welcoming investment capital seeking growth amplitudes in the future.
Agreeing with the change in the market, Mr. Ngo Thanh Huan - CEO of FIDT - said that current investment thinking has changed a lot. Instead of just asking whether the project will increase in price or not, investors and homebuyers are now more interested in specific factors such as whether the apartment is easy to rent, whether the urban area has residents living in it, whether there are schools, hospitals, shopping centers, offices, jobs and essential amenities around.
He believes that the market is shifting from thinking about buying assets to wait for price increases to choosing assets that can be exploited and create stable value over time. This is an important change, reflecting the maturity process of both buyers and project developers.
