VIETNAM REAL ESTATE: A WALK THROUGH THE WEST OF HANOI CAPITAL CITY
Prices on the rise and experiencing growth, fueled by infrastructure
Western Hanoi has experienced significant growth and development over the past decade, making it an attractive investment opportunity. Despite the challenges faced by the entire Vietnam real estate market in 2023, the value of homes in this area has continued to rise rapidly. According to the Real Estate Brokers Association (VARS), the western districts of Hanoi have consistently dominated the local market in terms of apartment supply and transactions. Since 2011, Bac Tu Liem, Nam Tu Liem, and Cau Giay districts have consistently held a significant market presence, accounting for approximately 30% of the supply share.
Nearly a decade ago, a series of large-scale developments began to appear along National Highway 32’s central Lang-Hoa Lac region. Nam An Khanh, Duong Noi, Lideco and other urban areas have dramatically altered the region’s scenery. The deliberate deployment of integrated infrastructure has resulted in a significant residential influx, driving the transition of this corridor into a lively urban environment. This area has already become a gigantic “mega villa town,” spanning thousands of hectares, making it a prime location for potential real estate investment and urban expansion.
Acclaimed developers such as Vingroup, Masterise Homes, CapitaLand, MIK Group, Nam Cuong and Keppel are capitalizing on these enhanced transportation links to create integrated communities. Highlighting the promising opportunities in Western Hanoi are notable residential complexes such as The Matrix One Me Tri, Vinhomes Green Bay, and Mailand Hanoi City. These projects are setting new benchmarks in terms of pricing, with rates ranging from VND 80 to 100 million per square meter.
Recent projects highlighting the landscape
The Western Hanoi’s real estate movement features several prominent projects that underscore its growth prospects. Anlac Group’s Moonlight 1 Anlac Green Symphony in Hoai Duc District will add over 500 premium apartments. Vietracimex’s The Wisteria includes three 25-story buildings, providing 840 luxury apartments scheduled for delivery in the fourth quarter of 2025. Mailand Hanoi City, developed by Phu Long and Keppel, is strategically located near Thang Long Avenue and Ring Road 3.5 with over 1,200 high-rise and low-rise homes offering excellent connectivity.
Within Vinhomes Smart City urban complex in Nam Tu Liem District, Masterise Homes’ LUMIÈRE Evergreen, a trio of 39-story towers, will deliver 2,000 residences by the end of 2025. Masteri West Heights with 3,600 upscale units was highly sought after for a finer standard of living. Following the success of the Imperia Smart City Phase 1, MIK Group has recently begun the construction of its Phase 2 – The Sola Park, which spans over 46,000 square meters and features five towers, encompassing more than 4,000 apartments.
These major initiatives are also creating a self-sustaining environment with excellent parks, cultural landmarks, shopping centers, healthcare facilities, and educational institutions, establishing Western Hanoi as a premier travel and relocation destination for expats in Vietnam.
Developing strategic plans for infrastructure is crucial for escalating investment momentum
Hanoi is set to transform into a thriving polycentric metropolis, with Western Hanoi rising as a focal point for administration and economic activities. This ambitious vision is outlined in the 2030 master plan and 2050 vision. Emerging neighborhoods are experiencing a shift away from the city center due to improved infrastructure, resulting in lower expenses and an improved quality of life for residents. VARS highlights a noticeable trend towards suburban areas, driven by luxurious mega-urban developments from Vinhomes and Ecopark.
Recognizing this trend, major developers are expanding their projects beyond the central areas of the capital city. This aligns with the preferences of 47% of the population, specifically the Millennials and Generation Z, who prioritize quality of life over proximity. In 2024, there is expected to be an increase in new supply due to regulatory changes and a recovering market.
Investment boom powered by beltway projects
With the construction of Ring Road 4 and the upcoming development of Ring Road 3.5 and Thang Long Avenue, Western Hanoi’s growth trajectory is set to undergo a significant transformation. Ring Road 4, with its ability to connect seven districts, is expected to attract a wide range of investors, both domestic and foreign. The improved connectivity and increased land value are key factors propelling this interest.
Improving traffic flow and enhancing accessibility is a key benefit of the newly opened Le Quang Dao Road, providing a direct connection between Thang Long Avenue and the Duong Noi Urban Area. Commercial investors should be particularly intrigued by such seamless connection.
Metro line no. 5: A catalyst for new growth
Another exciting infrastructure project is Metro Line No. 5 (Van Cao-Ngoc Khanh-Lang-Hoa Lac). The proposed project, with a length of 38.43 km and an estimated investment of VND 65.4 trillion, will play a crucial role in fostering urban development and connecting Western Hanoi to the city center. By 2025, the metro line is expected to be up and running, which will further enhance the appeal of the area.
Unforeseen shifts in business migration and market dynamics
Western Hanoi is rapidly emerging as a highly sought-after corporate hub, attracting a multitude of companies and government organizations due to its state-of-the-art infrastructure. Over the past decade, this area has seen the development of key institutions such as the National Convention Center, the National Exhibition Center, and the headquarters of the Ministry of Foreign Affairs. These establishments accentuate the district’s pivotal role in national and international affairs. There is currently a high demand for housing due to the surge of professionals, government officials, and international experts. Western Hanoi is currently experiencing a transformative period, offering investors the opportunity to reap substantial profits. This is due to the presence of top-notch infrastructure, meticulously designed projects, and a strong market demand.
Get professional insights and tactics on how to invest in Vietnam properties, residential leasing and asset management services, get in touch with Arcadia Consulting Vietnam at rs@arcadia-consult.com.vn.
