A young couple, Mr. and Mrs. Tran Huy Hoang, both working in a securities company in Hanoi, had saved up over VND 500 million after a few years. With a combined monthly income of approximately VND 40 million, they were tired of renting and longed for a place to call their own. With a young son about to start the first grade, the desire for a stable home became more pressing than ever.
However, their dreams were dashed when they realized how unaffordable property prices had become in the city center. Even in distant districts like Thanh Xuan and Hoang Mai, older apartments cost more than VND 60 million per square meter. A decade-old, two-bedroom, 60-square-meter apartment would cost over VND 3.5 billion.
Mr. Hoang shared his concerns about the unattainable prices in the inner city. With their son’s education becoming a priority, the couple felt an urgent need to find a suitable home.
Many young couples are opting to buy homes in outlying areas. Photo: Hoang Ha |
Real estate agents advised them to look at properties further away from the city center, such as Hoai Duc or Nam Tu Liem, where prices are more affordable, payment plans are flexible, and bank loans are available. Though the commute to their workplace would be around 10 kilometers, a 30- to 45-minute drive, the benefits included newer and more spacious homes with playgrounds for their child.
Mrs. Thao, though hesitant about the longer commute, agreed to view properties in these outlying areas. They were pleasantly surprised by the level of development in these regions. Gone were the days of barren lands; instead, they found modern apartment complexes with vast green parks, schools, hospitals, and supermarkets all within the residential compound.
“But I still wonder if we should buy a house in the suburbs,” Mr. Hoang mused.
Expert Advice:
Ms. Do Thu Hang, Senior Director of Research and Consulting at Savills Hanoi, shared her insights on the matter. While there has been an improvement in housing supply recently, it has not kept up with the market’s massive demand, especially for genuine homebuyers.
Soaring real estate prices in the city center significantly impact buyers with genuine housing needs, especially those with limited financial means. Even with the option of bank loans or financial leverage, accessing housing in the inner city remains a formidable challenge.
Hanoi is prioritizing investment in infrastructure, transportation, and social amenities in the outlying urban areas. The three main areas of focus for development are the west and south of Hanoi, the east and north of the Red River, each with a distinct functional orientation and developed following the TOD (Transit-Oriented Development) model.
These areas are strategically linked to a modern urban transportation network, including radial and ring roads and metro lines. Notably, the implementation of the Ring Road 3.5 and Ring Road 4 projects will act as vital arteries, providing convenient connections between the outlying and central regions, further boosting the demand for housing in these areas.
In parallel, large-scale urban projects in the suburbs are being developed with integrated transportation infrastructure and internal utility systems, attracting significant transaction volumes.
However, alongside these advantages, developing the outskirts also carries certain risks. Large-scale projects may take many years to complete, and the substantial investment costs can strain budgets and drive up land prices. Additionally, there is a risk of speculation whenever new planning information is released, causing property prices to surge beyond their actual value.
Ms. Hang recommended that buyers carefully consider factors such as infrastructure development progress, the reputation and capabilities of the developer, and the project’s legal transparency to mitigate risks when choosing housing projects associated with new infrastructure development.
Duy Anh
– 09:46 27/06/2025
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