The Development of Hanoi Infrastructures for Real Estate
In the last article, we have been through the overview of Hanoi – the capital of Vietnam with attractive real estate investment opportunities. An important factor that contributes to the potential growth of real estate in Hanoi is the rapid development of infrastructures.
What is happening in Hanoi right now?
The government has prioritized infrastructure development in Hanoi. It’s similar to the development of Beijing 10 years ago, with a focus on expanding the city’s ring roads system. People started moving out of the center of Hanoi – Hoan Kiem district to rear areas following these Ring Roads.
Completed Ring Roads 1-3, 3.5 and 4 already started construction and will be completed in 2023 and 2026 respectively
Hanoi is experiencing a remarkable transformation with the development of its metro lines, revolutionizing the way people navigate the city. The first metro line has already begun operations, ushering in a new era of efficient and modern transportation. Commuters now enjoy a seamless journey, bypassing traffic congestion and reaching their destinations with ease.
The 1st metro line is running well, the 2nd one is soon in operation
Excitingly, the progress doesn’t stop there. The eagerly anticipated second metro line is slated to be completed by the fourth quarter of 2024, further expanding the city’s transportation network.
With each passing day, Hanoi’s metro system evolves, reflecting the city’s commitment to progress and enhancing the quality of life for its residents.
The future looks promising as Hanoi continues to forge ahead in its pursuit of a modern, efficient, and sustainable urban environment.
The Western region, a new international financial and administration center in Hanoi
Decentralization toward the West
The Hoan Kiem area serves as the city center known as Old Quarter, from which the development extends to the second and third ring roads, allowing for the decentralization of office & residential properties.
For Residential Properties: when I visited Hanoi in 2016-2017, there were no high-end apartment buildings, only mid-end options, as people in Hanoi preferred townhouses. However, after 2021 and the impact of the Covid-19 pandemic, Hanoi has undergone changes.
Booming high-end condominium supply in the West of Hanoi
For Offices: buildings are now concentrated in the second and third ring roads, including Cau Giay and the western part of Hanoi. New office buildings have shifted towards the west of Hanoi.
High-end Grade- A office buildings in the West of Hanoi
Era of High-end Residential Projects Start
Before 2021, the majority of the supply in Hanoi consisted of mid-end projects, primarily purchased for residential purposes and lacking many amenities and quality living experiences.
However, since the COVID-19 pandemic & the relocation of foreign companies in Hanoi, the influx of foreigners has increased the demand for a higher quality of living with more amenities. As a result, most projects developed after 2022 have targeted the high-end segment and above. Similar to Ho Chi Minh City after 2015, where the entire market shifted to the high-end segment due to the increasing demands and financial capabilities of Vietnamese and foreign residents, Hanoi is following a similar trend.
Currently, 55% of the housing supply in Hanoi falls into the high-end segment.
As a result, the average primary prices have increased by 21%.
In Hanoi, a three-bedroom apartment in a good location costs around 400.000USD, and it can be rented out for approximately 1.400USD per month. Rental yield in Hanoi is currently more favorable than in Saigon (Ho Chi Minh City). One reason for this is the primary prices in Ho Chi Minh City have already risen, and the rental yield is no longer as attractive
And the next article will be the best part. I believe you are looking forward to it: the Hanoi Map, what areas are developing and where you should focus on and why?
Don’t miss out – stay tuned!
>>> See more:
Why Foreigners Should Invest Real Estate In Hanoi in 2023?: https://realtique.net/blog/en/why-foreigners-should-invest-real-estate-in-hanoi-in-2023
Realtique Vietnam Real Estate