Hanoi market heats up, boosting capital flow trend

Hanoi is currently facing an uncontrolled and constantly changing increase in real estate prices, with the average apartment price reaching 80 to 180 million VND/m2, residential land in some places reaching over 400 million VND/m2, auctioned land in Phu Luong, Ha Dong is being auctioned for up to hundreds of millions of VND/m2, leading to real estate in the capital no longer being attractive, forcing many investors to seek new opportunities in areas with more attractive growth potential.

Mr. Thanh (40 years old - office worker) said that every weekend, he and his colleagues spend time surveying and learning about land prices in areas surrounding the capital. They witnessed real estate prices in suburban areas increasing by 5-10% every month and every quarter. Not only Mr. Thanh, but also individual investors have the mentality of turning their attention to neighboring provinces.

Accordingly, localities such as Thai Nguyen, Thanh Hoa, Hai Phong, Bac Ninh and Bac Giang are assessed to have great potential thanks to the strong development of industry and transport infrastructure. This has promoted the shift of capital flows to suburban provinces, especially Thai Nguyen, where Pho Yen city is emerging as a "golden address" for industrial and urban real estate investors.

Pho Yen - Strategic investment destination in the coming time

Considered the developing economic core of Southern Thai Nguyen, Pho Yen possesses the advantage of developing both urban and industrial real estate, currently leading in attracting FDI capital in Thai Nguyen province with a total investment value of up to 6.8 billion USD and a GRDP growth rate 3 times higher than the whole country.

Pho Yen City – A bright economic spot with great potential in Thai Nguyen province (Photo: Samsung Electronics)

In addition, Pho Yen's transport infrastructure is being strongly upgraded, with a highway system connecting directly to Hanoi and neighboring provinces, creating favorable conditions for attracting investment in many multi-sector projects such as the construction of industrial parks, commercial service areas and large-scale real estate development. The city is also the destination of many "big names" in the electronics industry such as Samsung, Sunny, Trinasolar, Saigontel, DBG... with a total area of ​​over 2,000 hectares and a total investment of tens of billions of USD, making the local market more vibrant than ever.

In particular, Pho Yen has become the location of Samsung's largest phone factory in the world. According to statistics in 2023, Pho Yen City contributed up to 92% of the industrial production value and 97% of the export turnover value of the whole Thai Nguyen province. With such outstanding potential, experts assess that land prices in Pho Yen are still quite low, fluctuating between 60 - 130 million VND/m2 in central areas with good business potential. This price is considered "more affordable" than in the center of Thai Nguyen city - ranging from 100 to 200 million VND/m2, or in Bac Ninh with 150 - 250 million VND/m2 and Bac Giang when land prices are up to 267 million VND/m2 in special locations such as the center of Bac Giang city or infrastructure development areas, large industrial parks such as Van Trung and Dinh Tram.

Experts say that Pho Yen is still maintaining reasonable land prices because the area has not yet "touched" the wave of high-end real estate - which is the origin of the general price increase. However, with the high growth of the local economy and the continuous inflow of FDI capital, the appearance of high-end projects or reputable investors is inevitable. At the same time, according to forecasts, Pho Yen is striving to become a type II urban area by 2025 and continues to aim to achieve a type I urban area by 2030, opening up great opportunities for investors to seize the growth opportunity of the real estate market. At that time, the value of real estate here will grow even stronger.