The Capital’s Real Estate Boom: Hanoi’s Prime Property Prices Surge Past 400 Million VND per square meter

Soaring Prices: A Hanoi Real Estate Story

Vietnam’s real estate market, specifically in Hanoi, is witnessing a remarkable surge in prices, with street-front properties taking center stage. According to data from PropertyGuru Vietnam, a leading real estate analytics firm, street-front property prices in Hanoi skyrocketed by approximately 30% in Q1 2025 compared to Q1 2023, reaching an average of VND 437 million per square meter. This dramatic increase has brought these properties on par with prices in the suburbs.

A closer look at specific districts tells a compelling story. In Ba Dinh district, prime locations like Nguyen Cong Hoan street now command prices ranging from VND 430-520 million per square meter. Cao Ba Quat street has seen a substantial increase, with prices climbing from VND 240-320 million to VND 280-370 million per square meter. Properties on Ngoc Ha street have experienced a similar surge, now fetching prices between VND 360-620 million per square meter. Kim Ma street, a sought-after location, boasts prices ranging from VND 440-730 million per square meter.

The trend continues in the vibrant district of Dong Da, where street-front properties on Hoang Cau street now sell for VND 425-516 million per square meter, a notable increase from the previous range of VND 380-470 million. Yen Lang and Hoang Ngoc Phach streets have also witnessed substantial growth, with prices climbing to VND 370-560 million and VND 380-440 million per square meter, respectively. Even Huyn Thuc Khang street, already an expensive location, has seen a modest yet significant increase of 7-10%, with prices now starting at VND 550 million per square meter.

This price surge is not limited to specific districts, as evidenced by the 10-15% annual increase in property values in Cau Giay district. Duy Tan street, for instance, now commands prices ranging from VND 265-580 million per square meter. Hoang Quoc Viet and Nguyen Van Huyen streets have also seen substantial growth, with prices climbing to VND 420-600 million and VND 400-620 million per square meter, respectively.

Understanding the Reasons Behind the Rise

Nguyen Quoc Anh, Deputy General Director of PropertyGuru Vietnam, offers insights into the factors driving these price increases. He attributes the resilience of Hanoi’s street-front property market to its enduring appeal, even during sluggish market conditions. Additionally, the ease of leasing these properties contributes to their desirability.

Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, echoes these sentiments, highlighting the allure of street-front properties and other commercial real estate in the heart of the capital among investors. He explains that the scarcity of these prime locations will inevitably lead to significant increases in their value over time.

However, investing in street-front properties comes with certain considerations. This segment caters to individuals with substantial financial resources and a long-term investment horizon. While offering excellent liquidity and potential for price appreciation, the high price tag also carries the risk of capital immobilization. As such, experts advise against borrowing funds to invest in this segment.

It’s worth noting that while street-front properties are renowned for their stability in retaining value, their rate of appreciation lags slightly behind other real estate segments. During a booming market, other property types might surge by 30-100% annually, whereas street-front properties typically increase by 15-20%.

In the context of a recovering real estate market, street-front properties shine as a safe haven for investors, offering a stable haven for their funds. However, the high price tag, often in the billions of dong per property, limits the pool of potential buyers.

Investor Tran Nguyen from Dong Da, Hanoi, offers a forward-looking perspective. He believes that the upcoming enforcement of the Land Law, Real Estate Business Law, and Housing Law will usher in a new era of transparency and healthiness in the real estate market. According to Tran Nguyen, the market is transitioning to a new cycle, with a growing focus on civil real estate. He predicts that by early 2026, the market will enter a developmental phase.