Suburban market is still "hot"

After the inner city no longer had enough land to develop large real estate projects, investors shifted their investment cash flow to suburban and outlying areas. As a result, the suburban real estate market is becoming the “center” of the market.

In Hanoi, also because of the severe shortage of supply in the inner city area, the old Tu Liem district, now divided into two districts, Nam Tu Liem and Bac Tu Liem, is becoming the "basket" of housing supply for the entire market.

In particular, Nam Tu Liem real estate development is somewhat more prominent, thanks to its geographical location not too far from the city center. At the same time, the main roads and important infrastructure are all located in this area.

Over the past 5 years, real estate prices in Nam Tu Liem district have undergone a steady increase, with an average increase of about 11% per year.

According to a report by batdongsan.com.vn in 2023, the prices of most real estate products in this area increased. For example, apartment prices increased from VND 27 million/m2 to VND 39 million/m2, an average increase of 8.8%.

Meanwhile, private houses increased from 73 million VND/m2 to 108 million VND/m2, an average increase of 9.6%/year. Street-front house prices increased from 181 million VND/m2 to 247 million VND/m2, an increase of about 7.2%/year.

Land and residential land have witnessed a sharp increase with prices increasing from VND44 million/m2 to VND79 million/m2, equivalent to an average increase of 15.9% per year, nearly doubling in just 5 years.

However, like the real estate market nationwide, housing supply in Hanoi in general and Nam Tu Liem district in particular is gradually becoming scarce due to legal and capital problems.

However, recently, the Government and local ministries and branches have actively removed difficulties for the real estate market, creating momentum for market development in the coming time.

Mr. Nguyen Van Tuan, a real estate expert, said that the Hanoi real estate market still needs to wait a while to "absorb" the new policies. However, even when the difficulties have been resolved, the "center" of the market is still in the suburban areas.

“For the Hanoi market, Nam Tu Liem, Bac Tu Liem, Long Bien, Ha Dong and Hoai Duc districts are areas with enough land to develop large housing and real estate projects. Therefore, the “center” of the market is not in the inner city but in the suburban areas, where there is still land to develop projects,” said Mr. Tuan.

Choosing an apartment: Besides legal issues, you need to carefully research the fire protection system.

Currently, many large investors have poured huge capital into projects in the Nam Tu Liem area, such as Vingroup, MIK, or Quang Minh School Services Joint Stock Company,...

Some real estate projects such as Vinhomes Smart City, or the mixed-use commercial and residential building project QMS Top Tower located on To Huu Street, Dai Mo Ward, which is about to open for sale, have created new supply for the housing market in Hanoi.

However, experts say that in the context of a market that is still facing many difficulties, home buyers and investors should choose projects with clear legal status and strict compliance with technical regulations.

In particular, the project must be fully equipped with fire prevention and fighting features to ensure the safety of property and the health of residents. Grasping this trend, many projects have equipped apartment doors with 90-minute fire-resistant materials, the building has a fire alarm system, 2 emergency staircases, ventilation, exposure to light and fresh air.

In addition, some projects have a landscape area that is in direct contact with the air and brings fresh air to the entire apartment. Small space with big function, acting as a refuge space in case of fire.

Ms. Nguyen Thi Thuy Huong, representative of Quang Minh School Services Joint Stock Company (QMS), said: In the current context, fire prevention and fighting must be given top priority, fire prevention is better than fire fighting.

“Investors need to strictly comply with each project's legal procedures as well as in construction, strictly comply with technical regulations, pay attention to every detail, not be hasty or careless, especially in fire prevention and fighting work,” said Ms. Huong.