Riverside and Lakeside Urban Areas – Home of the Super Rich
For a long time, in many developed countries around the world, urban areas near rivers and lakes have always been associated with vibrancy and prosperity. A report by Knight Frank shows that the purchasing power of waterfront properties worldwide has increased at the highest rate in a decade. Average spending on riverside and lakeside properties has increased by 38% in 12 months (as of June 2022).
Accordingly, riverside and lakeside properties have always been the top choice of the upper class because they serve many purposes: living, vacationing, and investing. One of the great advantages of this type of property is the natural landscape and fresh air, which bring long-lasting health benefits to homeowners.
According to Zoopla, a real estate consultancy specializing in the UK market, in 2022, the only area in London with high real estate prices outside the city center is the Thames riverfront, with an average price ranging from £1.3 million to £1.8 million, twice as much as the surrounding areas despite the same distance to the city center.
In China, the real estate prices in Shanghai have been skyrocketing, reaching 20% in 2021. In March 2022, a villa with an area of 593m2 on the Huangpu River was auctioned for a record-breaking price of 177.9 million Chinese yuan (equivalent to 601 billion Vietnamese dong). The number of super rich individuals is increasing, so the Huangpu River waterfront properties are always in high demand on the market, despite the significant price difference compared to the surrounding areas.
In Vietnam, Knight Frank predicts that the number of super rich individuals will increase by 26% in the period 2021-2026, on par with Hong Kong and Taiwan (China). The Vietnamese upper class is still quietly investing in real estate, which affirms the value and attractiveness of the luxury segment. High-end projects near rivers and lakes are always sought after.
West Lake Area Real Estate – Strong Attraction Thanks to Good Planning
Regarding the role of riverside and lakeside urban areas, Architect Trinh Hoai An, Director of Urban Planning at Archetype Vietnam, believes that these urban projects can create breakthroughs in economic, social, and infrastructure development for the entire city, even the surrounding areas. Riverside urban areas are the driving force behind job creation, investment attraction, and infrastructure improvement for the urban landscape.
In Vietnam, one cannot fail to mention West Lake when talking about hotspots of riverside and lakeside real estate. The projects in this area are always considered to have prime locations, making them “the most worth living area” in the capital city.
In reality, real estate here has always been more attractive than other areas, and demand has never shown signs of decline. In fact, many international real estate experts have compared land prices in West Lake and the Old Quarter of Hanoi with famous expensive real estate cities around the world such as Tokyo (Japan), London (England)…
According to data from Savills, from 2021 to the end of 2023, real estate prices in West Lake (including Tay Ho and Bac Tu Liem districts) have increased more rapidly than the overall market in Hanoi. In which, the prices of primary apartments in Tay Ho district increase by 27% and Bac Tu Liem district increases by 21% annually, while the average increase for the entire city is 17% per year. In the low-rise segment, primary prices in Tay Ho district increase by 13% and Bac Tu Liem district increases by an average of 17% per year.
In addition, the real estate around West Lake is becoming increasingly scarce, while the supply is almost non-existent. This reality makes the remaining real estate projects in this area receive attention and eagerness from the wealthy, especially high-end villas with prestigious locations, isolation, good living environment, prosperous feng shui, bringing value to the quality of life and social status for homeowners.
Furthermore, due to the extremely high prices of billion-dollar villas near the lake, the West Lake market has become more dynamic, attracting attention and demand from customers and real estate investors. High-end villas near West Lake offer a spacious living space and top-class amenities in a situation of limited supply.
Most real estate experts agree that with better infrastructure, amenities, and planning, this area still has great potential for development, with a potential period ranging from 5 to 10 years. In addition to the actual residents, this area also attracts large-scale investors with long-term vision, large capital, and deep investment for future wealth accumulation.
With the development orientation of building a new administrative center for functional agencies in recent years, Tay Ho district has been investing in synchronized urban transportation systems on a large scale. Upgraded and expanded arterial roads have made transportation more convenient, such as Vo Chi Cong, Nguyen Hoang Ton, the 60m road connecting two arterial roads Vo Chi Cong – Pham Van Dong… In addition, the urban railway line 2 Nam Thang Long – Tran Hung Dao with a length of 11.5km will be implemented in the near future, connecting Tay Ho district with the city center.
Owning real estate in West Lake not only brings pride and self-confidence to homeowners but also represents a long-term investment due to its strong potential for price appreciation over time.
