Hanoi real estate prices show no signs of cooling down
Since the beginning of the year, Hanoi real estate has entered a period of overheating in many segments, causing prices to continuously increase. The beginning of the price increase period was the apartment segment. By the end of the third quarter, the average primary selling price of apartments in Hanoi had reached nearly 70 million VND per square meter, only a few percent lower than the market in Ho Chi Minh City. CBRE Vietnam experts also commented that "for the first time in history, Hanoi apartment prices have increased rapidly in such a short period of time."
Not only apartments, other products such as land, villas, and townhouses are also climbing. This also causes the initial capital that investors have to spend to increase. In the last quarter, the price of townhouses in Hanoi increased by nearly 27% compared to the same period last year, reaching 235 million VND/m2. The transfer price also increased by nearly 7% year-on-year, reaching nearly 170 million VND/m2. The high and constantly "dancing" price threshold is also a big obstacle for investors with long-term appetite.
Mr. Nguyen Anh Que, Chairman of G6 Group, said that with the current high price trend, there are not many opportunities to invest in real estate segments in Hanoi. Many investors have switched to the gold channel, increased savings or switched to the real estate market in the provinces, especially tourist capitals such as Ha Long, Sapa, etc.
“Not only local investors but also more and more Hanoi investors are flocking to potential provinces to find new opportunities,” said the Chairman of G6 Group.
Mr. Duc Viet, owner of a materials business and a real estate investor with more than ten years of experience, said that the price of real estate in Hanoi is very high. At this time, if he continues to pour money into an area that has already increased rapidly, Mr. Viet is very concerned about the risk of "catching the peak", making it difficult to optimize investment cash flow. Not to mention the new land price list that is about to be applied soon, according to the Ministry of Construction, could increase real estate prices by 15-20%, causing profitability to decrease further.
Therefore, he and his group of investors quickly moved to other major cities to hunt for new opportunities. Not only looking for a property with high profit potential, Mr. Viet also wanted this to be a vacation home for his family. Because the value of real estate investment is optimized when meeting both the need for use and the need for long-term accumulation. These values will ensure that the investment property will increase in value sustainably in the long term.
Investment wave is pouring into the provinces
According to experts, more and more investors are moving to the provinces instead of focusing on Hanoi real estate. This trend started at the end of the first quarter and is becoming stronger as the land fund for project implementation in Hanoi's inner city districts is very limited and the suburban market is witnessing a peak price increase in the villa and townhouse segment in the third quarter of 2024.
Investors often prioritize provinces with great potential and strong economic development momentum, possessing modern and synchronous transport infrastructure such as Quang Ninh, Hai Phong, Hung Yen or possessing large industrial parks such as Bac Giang, Bac Ninh... These are also rare markets with growth during the period when real estate in many places across the country has "frozen" since the beginning of last year until now.
In particular, recently the Quang Ninh market, with the center of Ha Long city, has continuously welcomed waves of businesses coming to implement projects, as well as Hanoi investors coming to seek new profit opportunities. Because this locality is often considered the second hottest real estate market in the North, after Hanoi.
Reasonable price is one of the key points attracting investment capital to Ha Long. Currently, prices of all segments in Hanoi have reached their peak. Therefore, to invest in a good real estate such as townhouses and villas, investors may have to spend at least tens of billions. Even in suburban districts of the capital, 20-30 km from the center, real estate prices are constantly climbing, in some places exceeding 200 million VND/m2. Meanwhile, with the same amount of money, investors can find many more potential and stable profit opportunities in Ha Long.
In the context of the two urban areas of Hanoi and Ho Chi Minh City being saturated in investment performance and increasingly limited opportunities due to high prices, the Ha Long market has emerged as a bright spot due to its abundant supply, meeting diverse investment tastes. Currently, this area has gathered many big names in the industry with diverse supply. In particular, a few projects with advantages of sea frontage, land legality, and long-term ownership are of most interest to investors, including Lagoon Residences, Grand Bay Halong Villas, etc.
From now until the end of the year, the trend of real estate investors moving to the provinces is forecasted to be stronger and more vibrant. With its existing advantages, Quang Ninh real estate, especially Ha Long, will open up many new opportunities for investors to flock to.
Sustainable growth potential of Ha Long real estate
This market shows the potential for long-term sustainable price increases when it is planned to be the central urban area of Quang Ninh province - a centrally-governed city by 2030. From now until 2025, the city plans to invest in about 45 infrastructure, transportation, cultural, educational projects... to create momentum and expand new development space. By 2030, Ha Long is also oriented to become a smart city, a green city, sustainable development adapting to climate change to lead the entire Northeast region.
Along with that, Quang Ninh is currently one of the localities with leading economic potential. Last year, the province collected more than 55,600 billion VND in budget revenue, the 6th highest in the country and the 3rd highest in the North, after Hanoi and Hai Phong.
Thanks to its strong internal strength, Quang Ninh has also recovered quickly after being severely damaged by the historic typhoon Yagi. Recently, the provincial leaders rejected 100 billion VND in support from the central budget. Instead, Quang Ninh has allocated 1,000 billion VND from its savings to overcome the consequences of the typhoon and implement social security policies.
In the long term, the locality also has great potential from the tourism industry and the orientation of developing industrial zones. By 2030, Quang Ninh aims to make tourism a spearhead economic sector by striving to welcome 26 million visitors each year, including about 9 million international visitors.
Regarding industrial parks, the province plans to develop 8 new parks and 28 industrial clusters. With this orientation, Quang Ninh has attracted nearly 1.56 billion USD in registered foreign investment capital after the first 7 months of this year - 2.2 times higher than the same period in 2023 and ranked second in the country.
