OVER 5,300 APARTMENTS IN HANOI APPROVED FOR SALE
02/09/2024
Hanoi Capital City’s real estate market is experiencing an outstanding transformation, as local authorities have recently given the green light to nine projects that will introduce more than 5,300 new apartments to the market. This wave of development offers a prime opportunity for investors who are keen to tap into one of Southeast Asia’s most dynamic property sectors.
According to the latest update from Hanoi’s Department of Construction, these projects have met all regulatory conditions for sale as of August 2023. This influx of new supply is set to ease the capital’s ongoing housing shortage, which has been a persistent issue in recent years. For investors, this represents not just a chance to meet growing demand, but also to capitalize on a market that is primed for long-term growth.
The most notable among these newly approved developments is Lumi Hanoi, part of the expansive Vinhomes Smart City complex in the Tay Mo – Dai Mo wards. This project, backed by CapitaLand Development, will add over 2,400 units to the market. Situated in one of Hanoi’s fastest-growing urban areas, Lumi Hanoi is well-positioned to benefit from strong infrastructure and connectivity—key factors that make it an attractive prospect for investors seeking sustainable, long-term value in a major urban hub.
Vinhomes Smart City continues to bolster its offerings with another residential complex on plot F4-CH02, which will contribute an additional 1,330 units to the market. Vinhomes is renowned for creating integrated urban ecosystems that offer residents a full suite of amenities and services, which in turn drives strong demand for their properties. Another standout project is Sunshine Crystal River, located in the Nam Thang Long Urban Area Phase III. This development, branded under Noble Crystal Tay Ho, will introduce 955 high-rise units and 60 low-rise homes, catering to Hanoi’s growing appetite for luxury living spaces. This mixed-use project seamlessly combines residential, retail, and commercial spaces, reflecting a trend that’s becoming increasingly popular in urban markets worldwide.
In addition to these large-scale developments, several other projects have been approved, offering a range of investment opportunities across different segments of the market. The Langs Village Low-Rise Residences in Dong Da District will add 11 low-rise units, while the Tay Nam Me Tri Residential Group in Nam Tu Liem District will contribute 65 low-rise units. Meanwhile, the Van Xuan Commercial Housing project in Bac Tu Liem District will bring 37 low-rise units to market, and the Pho Xanh Low-Rise Commercial Residences project in Gia Lam District will add 134 units. The HUD – Son Tay Low-Rise Residential Area in Son Tay Town is set to deliver 84 units, further diversifying the market with options that range from mid-range to premium, all offering solid potential for both capital growth and rental yield.
The timing of these approvals couldn’t be better. Hanoi’s real estate market has faced significant supply constraints over the past two years, driven by regulatory delays and broader economic challenges. However, 2023 has seen the market begin to turn a corner, with approximately 10,700 new apartments coming online in the first half of the year—nearly matching the total supply from 2022. This resurgence signals a recovery that investors should take note of, as it coincides with pent-up demand for modern, well-located properties that align with global standards.
Looking forward, the outlook for Hanoi’s real estate market remains bullish, with over 45,000 new apartments expected by 2026. However, it is important to note that much of this new supply is skewed towards the high-end and luxury segments. For investors, this trend presents a strategic opportunity to focus on premium developments that cater to Hanoi’s expanding affluent population, as well as its growing expatriate community. The combination of new supply, increasing demand, and ongoing infrastructure improvements creates a fertile environment for investment.
Get professional insights in Vietnam properties, residential leasing and asset management services by Arcadia Consulting in Vietnam, reach our Residential Services team at rs@arcadia-consult.com.vn.
