The Development Potential of Real Estate in South Hanoi
The real estate market in South Hanoi is experiencing strong growth potential, thanks to significant infrastructure projects and strategic developments. This article explores the key factors driving the development of the real estate market in this region.
Infrastructure as a Catalyst for Growth
One of the primary drivers of the real estate market in South Hanoi is the strong focus on infrastructure development. In the period of 2024-2025, several districts including Hoai Duc, Thanh Tri, and Dan Phuong are set to be upgraded to become urban districts. Experts believe that this transformation not only enhances the urban planning but also creates a significant attraction for the real estate market.
An outstanding example of this transformation is Thanh Tri district, which has fulfilled 27 out of the 31 necessary criteria to become an urban district. The district has also achieved standards in urban infrastructure development, laying a solid foundation for future growth.
The transition from district to urban district involves land-use restructuring. Agricultural land will be converted into residential, commercial, and service areas. This development process highlights the formation of smart cities, commercial centers, entertainment zones, and high-end healthcare service areas, all interconnected with synchronized technical and social infrastructure.
Particularly, the South Hanoi region is witnessing a strong transformation in the real estate sector, thanks to significant infrastructure projects. Among them, the Urban Railway Project No. 1 (Yen Vien – Ngoc Hoi) plays a crucial role.
This project not only serves the North-South high-speed railway but also integrates national and urban railway networks, creating a versatile transportation hub connecting different areas. The project is expected to be completed by 2024, bringing a new wave to the real estate sector and significantly improving connectivity and accessibility in the area.
In addition, Hanoi has proposed the construction of a high-speed railway station in Phu Xuyen. This not only serves the construction of the second airport of the capital city but also supports the development of satellite urban areas, with an expected population of up to 127,000 people.
Of note, the second airport of Hanoi will be located in the southern area of the Northwest – National Highway 5B route, between Phap Van – Cau Gie Expressway, National Highway 1A, North-South high-speed railway, and the southern economic transportation axis. It is scheduled to be implemented after 2030, making it a significant boost to the capital’s transportation and aviation infrastructure upgrade.
The development of the second airport will create a new wave in the real estate market in South Hanoi. Improving infrastructure and transportation connectivity not only attracts investment and economic development but also increases the value of real estate in the region.
South Hanoi Takes the Spotlight as a Dynamic Market
According to Savills Vietnam, the South Hanoi region will become one of the most dynamic real estate markets in Hanoi from 2023 onwards. The price appreciation phenomenon that has occurred in the East Hanoi area in the past five years is expected to be replicated in the South Hanoi region in the next 5-10 years, particularly with the strong push for infrastructure development.
In the secondary market, several projects in the South Hanoi area, such as Hai Ba Trung district and along the Ring Road 2, have seen annual price increases of 9-10% over the past three years, higher than the city-wide average of about 4% per year.
A survey conducted by the One Mount Real Estate Market Research and Customer Insights Center at the end of 2023 showed that among 63% of people interested in real estate in 2024, they are focused on apartments, land, and residential properties. The secondary market experienced a bustling transaction volume, with higher transactions for residential properties compared to project transactions. Stable, attractive price levels and advantageous business opportunities contribute to the popularity of residential properties.
Savills Vietnam experts also anticipate a revitalization of investment activities in the Hanoi real estate market in the third quarter of 2024, driven by neighboring large markets.
During this time, foreign investors with strong financial capabilities, professionalism, credibility, and an understanding of the Vietnamese market are seizing the opportunity to launch new products.
In the past two years, in the southern market, Gamuda Land has adopted a short-term land investment strategy, focusing on densely populated residential areas and places with planned infrastructure. Meanwhile, in the Hanoi market, the developer is pursuing long-term projects and comprehensive urban development. Gamuda Land believes that these areas have a high potential for real estate demand due to the increasing population expansion to suburban areas.
Particularly, due to the advantages of location and potential of this project, the selling price has continuously increased. Since the project’s Phase I in 2014, the initial price of 43.6 million VND/m2 has now reached about 160 million VND/m2 in the secondary market for detached and semi-detached villas at Gamuda Gardens.
Notably, various areas adjacent to Hoang Mai district have also experienced price increases year after year. On many real estate trading forums, land prices in Thanh Tri district reach 70 million VND/m2, and house prices reach 120 million VND/m2, similar to prices in downtown Hanoi.
In addition to residential needs, real estate is still seen as a long-term investment channel. Many experts believe that the completion of metro lines and ring roads will encourage a gradual shift towards suburban areas. This is an ideal time for those seeking investment opportunities in Hanoi real estate and a suitable location for residents looking for a “livable” address for themselves and their families.
The development potential of real estate in South Hanoi is undeniable. With the continuous improvement of infrastructure and transportation connectivity, this region is set to become one of the most vibrant and attractive real estate markets in Hanoi.