The Rise of Low-Rise Real Estate in West Hanoi

10 December, 2024

The Low-Rise Housing Market Maintains its Momentum

According to the Vietnam Real Estate Brokers Association (VARS), in the past three years, from 2021 to the present, the rate of increase in real estate prices in the west of Hanoi has been higher than in other areas, averaging 7-15%.

Among them, the low-rise segment (villas, adjacent houses…) has maintained impressive performance since the beginning of this year. Supply, selling prices, and transaction volume in the first quarter of this year all showed positive growth compared to the previous quarter.

According to Savills statistics, in the first quarter of 2024, the new supply of low-rise units in Hanoi reached 93 units, up 7% quarter-on-quarter and 221% year-on-year, including 50 villas in a project in the west of Hanoi (Ha Dong, Thuong Tin). Primary supply reached 665 units from 16 projects, with villas being the dominant type, accounting for 41% of the primary supply due to new units in a project also located in the west of Hanoi.

The number of transactions in the first quarter of 2024 increased by 189% quarter-on-quarter and 110% year-on-year, reaching 185 units. The number of units sold in the first quarter alone accounted for 52% of the total transactions in 2023. Along with this, 63% of the new supply was absorbed during the period, and 72% of the total transactions in the quarter were recorded in the west (Ha Dong).

Secondary selling prices for villas and shophouses per square meter of land increased by 14% year-on-year, while linked houses increased by 20% year-on-year. According to records, the primary selling price of villas reached VND 164 million per square meter of land, linked houses VND 192 million per square meter of land, and shophouses VND 279 million per square meter.

In the second quarter, new supply reached 128 units, down 2% year-on-year but up 38% quarter-on-quarter. The new supply came from projects in the west of Hanoi (Ha Dong, Hoai Duc, and Thuong Tin). The number of transactions in the period increased by 5% year-on-year, reaching 111 units, of which 61% were in Ha Dong district and 14% in Hoai Duc district.

The supply of villas from high-priced projects has led to a 9% quarter-on-quarter increase in the primary selling price of villas to VND 178 million per square meter of land. Linked houses were priced at VND 188 million per square meter of land, and shophouse prices increased by 3% quarter-on-quarter to VND 288 million per square meter of land.

Many real estate brokers in the west of Hanoi said that the demand for villas and adjacent houses has increased rapidly in recent months. The demand and successful transactions mainly took place in completed infrastructure projects with convenient transportation and modern utilities, such as Geleximco Le Trong Tan, Vinhomes Smart City, and Duong Noi New Urban Area.

Geleximco Le Trong Tan is one of the few large-scale urban areas in the west of the capital

The Great Advantages of West Hanoi

Hanoi’s low-rise real estate in the west has maintained its momentum in the race over the past few years and is setting new price levels recently due to its many significant advantages.

First, the real estate market in the west of Hanoi is riding the “wave” of infrastructure development. Major transportation routes are gradually taking shape, connecting this area to the city center, such as Thang Long Boulevard, Road 32, the Cat Linh – Ha Dong elevated railway, and the To Huu – Le Van Luong radial route.

The low-rise projects in the west of Hanoi are also “riding the investment wave” with the Le Quang Dao route (from Thang Long Boulevard in Nam Tu Liem district to the boundary of Duong Noi urban area in Ha Dong district) being technically opened and expected to be put into use soon.

The Vanh Dai 3, 5, and Thang Long Boulevard projects, with a total investment of more than VND 2,400 billion, were inaugurated in the second quarter of 2023. In addition, Vanh Dai 4 has entered the implementation phase and is expected to be operational by 2027. These are two key projects of Hanoi city that will transform the western area and connect the northern and southern routes.

In addition to the upcoming completion of transportation routes, many hospitals, schools, and other social infrastructure facilities are expected to drive up real estate prices in this area.

Second, the west of Hanoi is gradually becoming the new administrative and economic center. With the increasing population, the city of Hanoi expanded its administrative boundaries and gradually moved ministries and branches to the west, where there is a large land fund and an important gateway location.

This shift has created a concentration of thousands of large and small enterprises from home and abroad, forming a wave of residential relocation to the west of the city by a large number of state employees, foreign experts, and high-quality laborers.

Moreover, the breakthrough in planning and infrastructure has attracted many large investors to focus on the west to develop large-scale projects. Many low-rise real estate projects prioritize green, fresh, and cool living environments, creating an ideal living space.

Among the bright spots of the low-rise segment in the west of Hanoi, Geleximco Le Trong Tan is a name often mentioned by investors. This is one of the few large-scale urban areas in Hanoi, with an area of up to 147 hectares, a well-planned design, diverse segments, and a range of values from a prominent location, assured construction quality, to diverse educational and service utilities, and a perfect living space suitable for developing commercial and service models.

With its outstanding advantages and utilities serving the increasingly high-quality life, projects in the west of Hanoi, such as Geleximco Le Trong Tan, are expected to attract residents from the central urban areas, making the area more crowded and increasing the value of not only the project itself but also the surrounding small- projects.