Hanoi’s property market remains fundamentally strong, buoyed by owner-occupier demand. Owners have seen double-digit increases in price albeit a global downturn.
“Hanoi’s improving infrastructure has been a plus-factor where prices are expected to grow 7%. Middle-income buyers and investors are especially keen in investing in Hanoi’s township developments,” Alice Lee, Sales Director and Partner of Golden Emperor, remarks.
5 Growth Drivers in Hanoi’s Property Market
- Samsung urged to back Hanoi’s smart city development
- Property value boost with Hanoi’s MRT to complete this year
- Strong demographic fundamentals generating high residential demand
- Aims to increase its per capita income to US$11,000 by 2023
- Increasing land value, which in turn boosts property price growth
Korean conglomerate, Samsung, has been urged to back Hanoi’s Smart City developments and infrastructure. “Samsung’s Research & Development (R&D) Centre in Hanoi started last March and is on schedule, with 23 percent completed. Once opened, the centre will employ about 3,000 tech engineers primarily responsible for developing software, the 5G network, artificial intelligence (AI), and Big Data, adding that this will contribute to economic growth in Hanoi and Vietnam at large,” Choi Joo, General Director of Samsung Vietnam said.
To cope with Hanoi’s rapidly increasing population density, the government proposed to build an urban rail transit system. Construction has been underway with Line 1 already in the final phase of completion. Several other lines will complete in the next few years. Analysis has suggested that certain districts in Hanoi will undergo a significant price increase. Real estate properties close to the MRT will attract premium pricing compared to those further away.
COVID-19 and the US-China trade war has further prompted international manufacturers to shift production-base to Vietnam. In 2020, 68 industrial parks attracted over 822 million worth of FDI. A growing population of foreign professionals will significantly impact the city’s residential market.
Vietnam is poised to achieve upper-middle-income status in 2023, with per capita income headed for US$11,000 in 2035, according to JCER. Hanoi’s strong demographic fundamentals coupled with a rapidly-increase middle-income class will in turn generate an unmatched demand in residential housing.
Specialists at Golden Emperor predict that Hanoi’s township developments will attract international investors and middle-income buyers in the years ahead following the development of new infrastructure and an improved business landscape. Hanoi’s urbanization will boost the expansion of supply in emerging locations, including a dynamic rise in the supply of landed property in the outskirts of the city in 2019, such as Ha Dong and Yen So.