Real estate prices in Hanoi suburbs trending upwards

March 23, 2021 | 11:23
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After a long time in the doldrums due to the global pandemic, land and property development in the outskirts of Hanoi is once again blossoming, with prices skyrocketing.
real estate prices in hanoi suburbs trending upwards
Land and property prices are pushing upwards in areas such as Long Bien and Hadong in Hanoi. Photo: Duc Thanh

Thu Huong recently returned to work as a freelance broker when she realised the rising attraction of land and property in the outskirts of Hanoi.

She explained that her former company used to sell apartments, land plots, and adjacent villas in Hadong and Hoang Mai districts. These areas are far from the city centre and were offered at a more reasonable price range, targeting mostly homebuyers looking for a place to live. However, a few months ago, these and neighbouring suburban districts like Hoai Duc and Dong Anh suddenly heated up.

“A few years ago, vacant lots next to the abandoned villas of the Geleximco project on Le Trong Tan street in Hadong district were hard-pressed to get customers’ attention but have doubled or even tripled in price since then. Most shophouses are priced at around VND120-130 million ($5,200-5,650) per square metre, while apartments fetch VND25-27 million ($1,000-1,200) per sq.m,” said Huong.

Meanwhile, brokers offer residential land in the area at VND60-70 million ($2,600-3,000) per sq.m depending on proximity to the main road. In peri-urban villages such as Tay Mo (South Tu Liem district), Vinh Ngoc (Dong Anh district), and La Duong, La Phu (Hadong), prices range from VND25-50 million ($1,000-2,200) per sq.m. Some areas such as Kim Chung-Di Trach (Hoai Duc district) now come at up to $2,200 per sq.m and continue to fluctuate by day, while one square metre of residential land in An Khanh, An Thuong, and Van Canh (Hoai Duc) can fetch over $3,500.

“Estate transactions are bustling, and many older projects that could not be filled for 10 years are now almost completely sold out,” said Huong.

Explaining this increase, Nguyen Thi Hong Van, associate director of Valuation Services, Savills Hanoi, said inner-city land funds are growing gradually limited and complicated investment procedures have reduced investors’ interest. Meanwhile, infrastructure at peri-urban areas is rapidly improving, making these areas more appealing to investors. However, she warned prices are moving at a wide spectrum in these areas so buyers should make thorough comparisons and estimate the correct value of the property before entering into a transaction.

Indeed, investors and property buyers’ have been turning to peri-urban areas with a lot more gusto since Hanoi announced the master plan of Hoa Lac Urban Area last July. This has had a buoyant effect on property prices in villages and communes around the capital. Additionally, prices in Dong Anh, Gia Lam, Thanh Tri, and Dan Phuong districts (all just outside Hanoi) started to increase after the investment project was approved to build these four districts into urban hubs from 2025. In areas in Dong Anh district where Lien Ha, Duc Tu, and Thuy Lam industrial clusters will be established, prices have also received heavy upward momentum.

Recently, as rumours took flight about the Red River urban zoning plan being approved and issued by Hanoi in June, land prices in neighbouring areas began shooting up.

Last week, prices at the riverside areas of Xuan Canh commune, Dong Anh district fluctuated around VND17-18 million ($740-780) per sq.m. Since then, however, they have risen to VND28-30 million ($1,200-1,300). Nguyen Van Minh, a real estate broker in the area, shared that he had just dealt with a customer of a nearly 200sq.m of land with the price of VND28 million per sq.m, only to be offered VND30-35 million ($1,300-1,500) by someone else.

At another land lot near the Red River dykes, adjacent to Vinhomes Co Loa, Minh said that offer prices have nearly doubled, reaching $2,200 per sq.m and by the time the project breaks ground, they could reach as much as $3,500.

Land prices in neighbouring areas such as around Thach Cau street in Long Bien district also increased by about $130-220 per sq.m compared to last year. Many plots along the Red River in the district’s Ngoc Thuy ward are offered at similar prices, two or three times as much as before. Linh Nam ward of Hoang Mai district has been quite active with prices along the main road at VND65 million ($2,800) per sq.m, while properties on smaller streets and alleys are offered for VND35 million ($1,500).

The buoyant effects have in fact been rubbing off in a radius of 50km of Hanoi, with the prices of residential land steadily increasing, especially in provinces that have many industrial zones with modern infrastructure such as Bac Ninh, Bac Giang, Hai Duong, Thai Nguyen, and Ha Nam.

By Lu Y

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