Eastern real estate leads Hanoi market

Improvements in transportation infrastructure, a more complete legal framework, and renewed buyer confidence are marking a "turning point" for Hanoi's real estate market in 2025. In this market, high-quality, reputable products will continue to maintain their momentum and lead market demand in this new cycle.

Improvements in transportation infrastructure, a more complete legal framework, and renewed buyer confidence are marking a "turning point" for Hanoi's real estate market in 2025. In this market, high-quality, reputable products will continue to maintain their momentum and lead market demand in this new cycle.

2025: The beginning of a flourishing real estate market.

In a recent statement, Ms. Duong Thuy Dung, CEO of CBRE Vietnam, affirmed: “2025 will mark the beginning of a new cycle for the housing market, with abundant supply and improved product quality, boosting competition among developers. The market is expected to develop stably and sustainably as it adapts to new laws, circulars, and implementing guidelines. This will create a clear legal environment, opening up opportunities for homebuyers…”

In its recent report on the Hanoi real estate market, CBRE highlighted areas with significant potential for both demand and price appreciation in the upcoming cycle.

Specifically, as of the fourth quarter of 2024, the selling price of apartments in Hanoi reached 72 million VND/m2, an increase of 36% compared to the same period last year and 12% compared to the previous quarter. This is the highest increase recorded in the last 8 years in the Hanoi apartment market.

The majority of new supply in recent times has focused on high-end projects with complete legal documentation, developed in large urban areas in the eastern part of Hanoi. These projects, already operational or under development, such as Masteri Waterfront, Masteri Lakeside, The Metropolitan, and The Senique at Ocean Park 1, have begun leading the market. Consequently, primary and secondary market prices, as well as sales rates, have recorded strong growth.

According to representatives from Masterise Homes, the Northern market showed clear signs of positive growth in 2024, with projects developed by the company receiving significant customer interest, especially high-end products from the LUMIÈRE Series and Masteri Collection. This was also the year Masterise Homes successfully handed over and welcomed over 10,000 residents to two key projects in East and West Hanoi.

Furthermore, the market in Ocean Park 2 and Ocean Park 3 has become more vibrant with the supply of new high-rise apartments from the high-end, internationally standard project LUMIÈRE SpringBay. Along with entertainment activities and festivals such as the second concert of "Anh Trai Vượt Ngàn Chông Gai" and the Ocean International Spring & Lantern Festival, which are continuously held in the area, this has attracted market and public attention, contributing to an increase in real estate value.

Entertainment activities and festivals contribute to increasing the value of real estate in urban areas.

According to CBRE, in Q4 2024, the supply of high-rise housing in Hanoi continued to dominate, doubling compared to Ho Chi Minh City. The low-rise segment also showed a strong increase in supply and transaction volume compared to the previous year. In the coming period, Hanoi is expected to continue to be the key real estate market in the North. Within that area, the eastern region leads the supply and has growth potential thanks to a series of infrastructure investment and planning initiatives.

According to One Mount Market Research and Customer Insights Center, the supply of housing in East Hanoi will mainly be concentrated in the two existing mega-cities, Ocean City and Ecopark. These mega-cities are comprehensively developed and benefit greatly from key infrastructure projects that have been, are being, and will be implemented in 2025, such as the 3.5 Ring Road, the 4 Ring Road, the inter-provincial road 379, the Me So Bridge, and the Hong Ha Bridge.

Infrastructure leads the way

Dr. Su Ngoc Khuong, Senior Director at Savills, believes that Hanoi is currently in a strong growth cycle. Not only does it have an advantage in terms of supply, but it also boasts a well-developed infrastructure, diverse land resources, and room for expansion into large urban areas, particularly in the West and East. Many developers from the South are also trending towards moving North to find land for project development, attracting a large influx of real estate investors to this market.

From Q3/2024, the Hanoi market witnessed a shift in primary transactions from the West to the East, with the East accounting for the majority of supply (55%) and overall market consumption (50%). Projects in the East are mainly located within large, well-planned urban areas with complete amenities such as schools, hospitals, and sports and entertainment facilities, reflecting customer demand that goes beyond just housing; it also includes living space, convenience, and travel time.

The rendering of the LUMIÈRE Springbay project at Ocean Park 2, developed by Masterise Homes, has attracted significant market interest.

In addition, the eastern area benefits from important transportation infrastructure projects such as ring roads, metro lines, and river bridges, increasing connectivity between regions and enhancing real estate values in the future.

It is evident that, given the increasingly limited land in the city center, strong investment in connecting transportation systems has facilitated the trend of buyers moving to satellite cities and TOD (Transit-Oriented Development). In particular, large-scale projects, especially urban areas and mega-cities, not only meet the demand for high-end housing and convenient living but also reshape the urban landscape of the region.

Right at the "threshold" of a new cycle, real estate businesses are anticipating strong market demand in 2025. They believe that homebuyers' capital is readily available to participate in the market. This is because it's the best time to do so, as bank interest rates remain very stable, creating a favorable environment and abundant capital for buyers.

According to representatives from Batdongsan.com.vn, in the coming period, apartments will continue to be the beneficiary and the fastest-growing segment in terms of price appreciation due to infrastructure and planning. Surveys conducted by this company have shown that real estate is the investment channel with the best returns in Vietnam over the past 10 years. Specifically, the return on investment for apartments reached 197%, and for land plots reached 137% in Q4 2024 compared to Q4 2015.

It can be seen that 2025 is a suitable time for buyers to seek opportunities in real estate, as the first six months of this year are not expected to see excessively high price increases. The peak of price increases will occur in the 2026-2027 period. Accordingly, in this new cycle, buyers expect new, high-quality products with a commitment to meticulous development from investors.

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