In 2024, the real estate market is expected to face many challenges. However, with strong investments in urban infrastructure, the real estate sector is anticipated to recover quickly as the demand for housing continues to rise.
The roads that “awaken” real estate in the capital
In 2024, Hanoi plans to implement 58 transportation infrastructure projects, with a focus on rapidly executing connecting ring road projects. Notably, according to the city’s planning, a new administrative and economic center will be established in the western area.
In recent years, the western region has received substantial investment, leading to a flexible and synchronized infrastructure system. Major roads are gradually being established to connect this area with the city center, including Thang Long Avenue, Road 32, the elevated Cat Linh – Ha Dong railway, and the Tố Hữu – Lê Văn Lương radial roads.
In addition to being close to existing major roads, projects in western Hanoi are also benefiting from investment waves, especially with the recent technical opening of Lê Quang Đạo Road (from Thang Long Avenue in Nam Từ Liêm District to the boundary of the Dương Nội urban area in Hà Đông District) on April 1, which is expected to be put into use by October 2024.
The Ring Road 3.5 project, which connects with Thang Long Avenue and has a total investment of over 2,400 billion VND, began construction in the second quarter of 2023. Meanwhile, Ring Road 4 has entered the implementation phase, with plans to become operational by 2027. These two key projects are expected to significantly change the landscape of the western area and connect the North-South and East-West road networks.
Notably, the city has recently approved the implementation of Metro Line 5 (Văn Cao – Ngọc Khánh – Láng – Hòa Lạc), with an estimated total investment of 65.404 trillion VND and a total length of 38.43 km. Once completed in 2025, this metro line is expected to significantly enhance the landscape of the western area.
In addition to the convenient transportation system, social infrastructure in the western region is also rapidly developing, with hundreds of schools, hospitals, cultural and sports centers, and modern parks emerging in a short period.
Particularly, the relocation of various government departments to the western area has created a hub for thousands of large and small enterprises, both domestic and foreign. This has led to a wave of migration towards the western part of the city by a significant number of state officials, foreign experts, and high-quality labor. According to many experts, this “Westward Movement” has increased the demand for housing in the area, contributing to a rapid recovery in the western real estate market.
Western Real Estate Takes Off
According to the Real Estate Brokerage Association, the supply and transactions of apartments in western Hanoi have dominated several consecutive quarters. Specifically, the districts of Bắc Từ Liêm, Nam Từ Liêm, and Cầu Giấy have consistently led the market in terms of supply share, accounting for about 30% since 2011. Additionally, this region boasts the largest office supply in the capital, representing 50% of the market share, equivalent to 873,700 m².
Not only does the western area lead in supply, but it also continuously establishes new price levels, recording the most active transaction volume in the capital. Data from Batdongsan.com.vn shows that the price increase of apartments in western Hanoi is higher than in other areas, averaging between 7-15%. Depending on the location and project, the average increase ranges from 300 to 700 million VND per unit.
In recent years, the western area of Hanoi has rapidly attracted major real estate developers with smart urban projects and iconic properties. Notably, MIK Group has introduced its first Grade A apartment project in Hanoi, The Matrix One, along with a series of high-end apartments branded as Imperia. Located in a prime position within the smart urban area of western Hanoi and adjacent to a main road of 52 meters wide, the Imperia Smart City complex developed by MIK Group has contributed thousands of high-quality apartments, energizing the real estate market.
According to Ms. Đỗ Thu Hằng, Senior Director of the Research & Consulting Department at Savills Hanoi, the western area will remain a focal point for development in Hanoi in the near future. The emphasis will be on quality improvements, enhanced transportation infrastructure, and landscaping to alleviate pressure from high population density and traffic flow.
