“The Rise of an Industrial Powerhouse: A Real Estate Boom Like No Other”

At the seminar “Real Estate Investment Prospects in Metropolitan Areas,” Mr. Le Dinh Chung, CEO of SGO Homes, shared his insights on the significant opportunities that the region is presented with, especially in terms of infrastructure and transportation development. He highlighted how the improvement in transportation has become a crucial catalyst for the real estate market in the suburbs of the capital. For the period of 2021-2025, hundreds of billions of dongs have been allocated for transportation systems, opening up new avenues for progress.

In areas where transportation infrastructure has been developed or is currently being improved, real estate values have witnessed a stable growth of 15-20% within just 12 months. Notably, the Hanoi-Hung Yen axis is experiencing rapid urbanization, with real estate growth outpacing the market average by 1.5 times, making it the new hotspot in the investment wave in the Metropolitan Region.

Mr. Chung attributed this growth to the fact that urban projects often come with a comprehensive range of amenities, fulfilling residents’ needs for shopping, education, healthcare, and entertainment within the complex. Additionally, the well-developed transportation network facilitates flexible connectivity and reduces travel time to the center of Hanoi and other key nearby areas.

The living environment in these urban areas is also highly regarded for its civilized community, professional management, and modern living space. These factors create a strong appeal for this type of development while ensuring high liquidity as real estate values tend to be stable and appreciate over time.

The urbanization process in the provinces surrounding Hanoi is also accelerating rapidly, especially since the US-China trade tensions, which have prompted a shift in production and expanded investment. Consequently, the emergence of new industrial zones has led to a surge in demand for housing and urban infrastructure to accommodate the growing workforce.

In these emerging real estate markets, the most significant advantage lies in the vast and untapped land fund. This key factor has attracted prominent real estate enterprises such as Vingroup, Ecopark, Phu My Hung, and Hoa Phat to develop large-scale projects. The abundance of land allows developers to implement well-planned projects with synchronized designs that cater to the trend of high-quality living, featuring low construction density and a priority on green spaces and public utilities.

This foundation is vital for fostering the sustainable development of the real estate market in the long term, particularly in the industrial and satellite city segments. Another advantage worth mentioning is the competitive land prices in these emerging areas, which are 3-5 times lower than in Hanoi, depending on location and development potential. This presents a “double opportunity” for both investors and homebuyers: it helps enterprises optimize project development costs while expanding homeownership opportunities for a wider range of buyers.

Moreover, local authorities in many provinces and cities have been proactive in offering tax incentives, infrastructure support, and streamlined legal procedures to attract investment capital. This open investment environment contributes to shortening project implementation timelines and enhancing the efficiency of land exploitation in these emerging markets.

With these advantages, the Metropolitan Region is gradually forming a “new development belt” for the northern real estate market, becoming a focal point for investors in the coming period.

Currently, the real estate market in the Metropolitan Region is attracting investors’ attention. The key economic region in the North-South corridor is emerging as one of the critical development axes of the Vietnamese economy, especially with the presence of three major industrial centers: Bac Ninh, Thai Nguyen, and Bac Giang.

The balanced development of these three localities is forming a strategic economic corridor, driving growth in the entire Northern Key Economic Region. Simultaneously, the robust industrialization process in this region is providing a significant boost to the real estate market, particularly in the industrial, worker housing, and satellite city segments.

Additionally, the East-West economic corridor is a dynamic development corridor, connecting three strategic regions in the North, aiming to promote robust growth and sustainable development.

Notably, Hung Yen is emerging as a new “industrial capital,” with the rapid development of modern satellite cities. The province focuses on key industries such as electronics, high technology, and agricultural product processing, attracting the interest of many large investors, especially in manufacturing and production.

In the Hai Duong-Hai Phong area, Hai Phong has established itself as a leading northern hub for maritime and logistics activities, boasting a system of international deep-water ports that facilitate trade connections with global markets. Meanwhile, Hai Duong is promoting the development of auxiliary industries and logistics services, supporting the region’s economy to grow synchronously and efficiently.