Trends that will lead the apartment market in Hanoi in the coming time

Mid-range and high-end apartments

According toKinh te & Do thi , for the Hanoi real estate market, the position of the capital - concentrating many key agencies, a dynamically developing economy with the ability to connect between regions has created the prime location of the land fund.

Recently, many project investors have focused on the mid- to high-end real estate segment, because this is a segment with good potential and profit, and real demand.

According to the World Bank (WB), the growth rate of the middle class in Vietnam is among the highest in Southeast Asia with 1.4 million people added each year (in the period 2016 - 2020). It is forecasted that in the next 25 years, half of the population will join the middle class. The need to improve the quality of living space is inevitable and money will continue to flow into the mid- to high-end apartment segment.

The core urban area has a prime location, good and synchronous infrastructure, convenient transportation to headquarters, offices and has good economic and service activities suitable for developing mid- to high-end housing rather than the affordable, low-cost segment.

Real Estate - Trends that will lead the apartment market in Hanoi in the coming time — Recently, many project investors have focused on the mid- to high-end real estate segment, because this is a segment with good potential and profit, and real demand. Illustrative photo from the internet

Because this is an area that needs priority for developing social infrastructure and green space, it is not advisable to develop many houses. Apartment projects will be the optimal choice to save space, at the same time, the price cannot be reduced because it also has to "carry" additional costs for infrastructure and services. Especially, in new urban areas with a well-invested infrastructure system, high quality, diverse services, high-end utilities with large investment costs, clearly the price of apartment products will be very high.

In Hanoi, the central urban area no longer has land for development. 70% of the new apartment supply in Hanoi in 2022 will come from mega-urban projects in the East and West with the launch pad being the beltway and elevated railway that are actively being implemented, creating great appeal to buyers.

According to the plan, in the next few years, large bridges and large belt routes are gradually taking shape such as Vinh Tuy bridge phase 2, Tran Hung Dao bridge, Tu Lien bridge, Me So bridge, Hong Ha bridge, Ngoc Hoi bridge, Belt routes 3,5; Belt route 4 will create a driving force to help districts such as Long Bien, Gia Lam and part of Hung Yen become an effective satellite of the capital Hanoi.

The complete transportation system makes distance no longer a concern, the East is welcoming a strong wave of population migration, favoring green and ecological lifestyles. Investors are also beginning to realize that the East has golden potential. Mid-range and high-end products have been and are being developed here, suitable for living, renting and long-term savings.

The “15-minute metropolises”

According to Cafeland , in the past, home buyers often did not have “data” so there were not many projects to choose from, compare and refer to. The decision to buy a house was often based on the guidance and experience of parents.

On the contrary, today's young generation gets to study abroad or travel to many places, has the opportunity to experience luxury apartments, so of course there will be comparisons.

OneHousing’s Center for Market Research and Customer Insights in the Real Estate Industry has conducted many interviews with students who have returned from studying abroad or have just graduated. They have one thing in common: their financial potential may not be enough, but young people always expect and aim for a comfortable, convenient, safe life and a community with “like-minded” tastes. If they earn money, they are willing to spend it.

Most young people pay attention to apartment buildings with parking spaces. They pay attention to operational services and amenities to ensure a civilized and modern living experience. If they are young families, they value the “all in one” amenities to easily relax on weekends right near the apartment building.

Mr. Tran Quang Trung, Business Development Director of OneHousing, believes that “15-minute metropolises” – meaning all daily needs will be served within 15 minutes of travel – will be suitable for this class of residents.

This is also the demand that determines the future development of high-end real estate in big cities.

In addition, according to OneHousing experts, the factor of "creating good cash flow" will prevail at this time of the market.

To achieve this factor, investors will consider the “3 yeses”: Good legal status for easy transfer; available or quickly forming a surrounding residential community for immediate rental; and a beautiful location (scarcity), multi-utility service complex, professional operation to ensure potential price increase in the future.

To find this type of real estate, Mr. Trung believes that the reputation and financial potential of the investor are the most important. Because only then can they have a beautiful land fund, large enough for infrastructure, ensuring quality and progress of handover, and full legality.

Dao Vu (Synthesis)

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