Apartment prices in Hanoi are constantly increasing, showing no signs of cooling down. In particular, apartment prices in the West Lake area continue to increase impressively, with some projects reaching up to VND 260 million/m2.
Apartment prices recorded strong increases in both primary and secondary markets
According to a survey by Batdongsan.com, the West Lake area (Hanoi) is always in the top areas in terms of supply and transactions in the market. In the past 3 years, from 2021 to present, the price increase rate of apartments in this area has always been higher than apartments in other areas by an average of 7-15%. In particular, West Lake is a gathering place for large-scale real estate developers with high-end product lines that position their own brands for this area.
According to research by Batdongsan.com.vn, the common denominator of new apartment projects in the West of Hanoi is that they are all in the luxury segment with prices equal to those of high-end apartments in the “golden land” of Ba Dinh district.
Savills data also shows that from 2021 to present, real estate prices in Tay Ho Tay (belonging to the two districts of Tay Ho and Bac Tu Liem) have increased more strongly than the general level in the Hanoi market. In particular, the price of primary apartments in Tay Ho district increased by 27%, Bac Tu Liem district increased by 21% per year, while the average increase in the whole city is 17% per year.
For example, the HH9 luxury apartment project in the Starlake West Lake Urban Area project, if in 2018, the official selling price in the first phase was around 50 – 65 million VND/m2, then in 2020, in the final offering, the price increased to around 52 – 70 million VND/m2. Surprisingly, up to now (March 2024), there are apartments in this project, the price has increased to 120 million VND/m2. The investor has almost run out of products to sell.
Another project also in Tay Ho Tay – Heritage West Lake, in the primary market, the selling price of the investor at the time of opening for Duplex products was around 192 million VND/m2, up to now it has skyrocketed to 220 – 260 million VND/m2, an increase of more than 35%. Accordingly, the lowest price for 2-bedroom apartments in this project is 8.2 billion, while the secondary market price is 1-3 billion higher. The lowest price for 3-bedroom apartments is 13.5 billion, while the secondary market price is 3-5 billion higher. Notably, a 4-bedroom apartment has just set a record selling price of 48 billion VND.
Despite the high price, owning an apartment at Heritage West Lake is not easy at this time. Ms. Hoang Anh – an investor who is currently aiming for the Heritage West Lake project said that she had consulted and really liked a Duplex apartment here with a price of 220 million/m2. However, right after the day of consulting with the sales, the apartment was immediately reserved. “The apartment in this area has a beautiful location and good liquidity, so at the right price, customers quickly closed the deal,” Ms. Hoang Anh shared.
Both investors and “End-users” flock to West Lake
In recent days, the areas of Xuan La, Xuan Dinh, Phu Thuong, Dong Ngac wards… in Tay Ho district have been bustling with brokers, investors and “careful, heavy-pocketed” customers coming to learn about real estate prices. On online real estate trading platforms, the Tay Ho Tay land area, Nam Thang Long urban area… are always at the top of discussions and inquiries about buying apartments.
Explaining this bustle, Mr. Hoang Phuong – a sales specialist of a large real estate distribution floor in Hanoi commented: “In the past few years, the strong development of “billion-dollar” traffic infrastructure, social infrastructure and breakthroughs in planning have made the area west of West Lake (Hanoi) receive “capital” from many large investors, developing large-scale, quality projects. Of course, these projects are gradually becoming the top choice for investors and customers with real housing needs”.
According to Ms. Ngoc Anh – head of priority customer management (PRM) of an international brand operating from Switzerland in the Hanoi area, the reason why real estate in Tay Ho Tay has increased in price is because the climate, environment and convenience in work are very suitable for the “taste” of the specific customer group that she is “taking care of”.
“My clients are mainly foreigners, in the field of diplomacy and multinational financial management currently working in Hanoi. They really like to stay in the West Lake area thanks to its multi-connected location (adjacent to the belt roads, near Noi Bai airport, about 4.5km from Ba Dinh center…), in addition, it is located in the synchronous planning of state agencies, so it is very convenient for their specific work, such as information about the planning of the headquarters of 36 central agencies to be moved to West Lake…
In particular, Western guests really like to stay near West Lake because of the guaranteed security conditions, fresh environment and a long-standing “international lifestyle”. Therefore, this area is often the first choice when our clients mention details related to accommodation services, only when there is no more room, they agree to stay in inner-city areas such as Hoan Kiem, Ba Dinh.
In recent days, the areas of Xuan La, Xuan Dinh, Phu Thuong, Dong Ngac wards… in Tay Ho district have been bustling with brokers, investors and “careful, heavy-pocketed” customers coming to learn about real estate prices. On online real estate trading platforms, the Tay Ho Tay land area, Nam Thang Long urban area… are always at the top of discussions and inquiries about buying apartments.
Explaining this bustle, Mr. Hoang Phuong – a sales specialist of a large real estate distribution floor in Hanoi commented: “In the past few years, the strong development of “billion-dollar” traffic infrastructure, social infrastructure and breakthroughs in planning have made the area west of West Lake (Hanoi) receive “capital” from many large investors, developing large-scale, quality projects. Of course, these projects are gradually becoming the top choice for investors and customers with real housing needs”.
According to Ms. Ngoc Anh – head of priority customer management (PRM) of an international brand operating from Switzerland in the Hanoi area, the reason why real estate in Tay Ho Tay has increased in price is because the climate, environment and convenience in work are very suitable for the “taste” of the specific customer group that she is “taking care of”.
“My clients are mainly foreigners, in the field of diplomacy and multinational financial management currently working in Hanoi. They really like to stay in the West Lake area thanks to its multi-connected location (adjacent to the belt roads, near Noi Bai airport, about 4.5km from Ba Dinh center…), in addition, it is located in the synchronous planning of state agencies, so it is very convenient for their specific work, such as information about the planning of the headquarters of 36 central agencies to be moved to West Lake…
In particular, Western guests really like to stay near West Lake because of the guaranteed security conditions, fresh environment and a long-standing “international lifestyle”. Therefore, this area is often the first choice when our clients mention details related to accommodation services, only when there is no more room, they agree to stay in inner-city areas such as Hoan Kiem, Ba Dinh.
In fact, we are having to constantly search and survey real estate prices, especially high-rise buildings in the West Lake area. Currently, prices in this area are increasing dramatically, but are still quite suitable for the “willingness to spend” and the need to enjoy high-class living space of the customer group we manage”, Ms. Ngoc Anh shared.
Not only the indirect customers mentioned above, the price of real estate in Tay Ho Tay is also of special interest to households (end-user customers). Mr. Phuc Khang’s family is currently living in Hai Ba Trung district – Hanoi, wanting to move to Tay Ho Tay area for the convenience of a large family, fresh air because the family has elderly people. Mr. Khang said that this whole week, he and his wife asked the broker to help them find an apartment with about 4 bedrooms, open view, price around 7-8 billion, even if they don’t need to buy it right away, but it is still very difficult. Even now, some investors and floors have turned to “holding goods” and not selling to wait for the next price increase.
Mr. Khang shared: “My family has three generations, my parents are now old, so we really need to find a large house with green space, spacious internal area so that my parents can breathe fresh air, exercise every day, and my children can also play comfortably. I decided to choose Tay Ho Tay because the air here is very fresh, less polluted than other districts in the city, the feng shui is very good, the traffic is also convenient to move to the center… However, despite asking for sales support, for many months now we still have not found a satisfactory apartment, mainly because the price is increasing a lot.”
It can be seen that currently in Hanoi, real estate near West Lake is highly valued and it is not surprising that most of the projects with the highest prices on the market are located near West Lake. When there is not much land left in this area, home buyers almost have to target rare projects that are under construction.
In addition to domestic investors, a group of “loyal” customers choose West Lake Tay as a place to live and invest from countries around the world, due to the historical nature of this area, which has long been identified as “the land of global citizens”. On the other hand, in the revised Land Law (effective from January 1, 2025) approved by the National Assembly, the new change that has received much attention is the expansion of land use rights for foreigners.
Experts say that this change will bring more investment opportunities to the group of overseas Vietnamese and foreigners who buy real estate. This is also the driving force for market development, because real estate in the West Lake area is always of interest to this customer group. The price of apartments in West Lake will continue to have a clear breakthrough in the coming time. In particular, projects with full service utilities and the participation of international operators will continue to be the destination of the high-end residential community, pushing the price level up.
