by NGOC ANH 24/03/2023, 14:26

Provincial Spotlight: Residential markets in Ha Noi and surrounds

Viet Nam has become a popular destination for real estate investors and developers due to its strong economic growth and increasing demand for housing.

In Ha Noi, buyers will enjoy comprehensive and strong infrastructure systems and the vibrance of the city.

While major cities like Ha Noi have traditionally been the focus of real estate investment, outlying provinces such as Bac Ninh and Hung Yen are becoming more attractive due to their lower entry costs and growing economies. Savills will explore the residential markets in Ha Noi, Bac Ninh, and Hung Yen, highlighting their similarities and differences, and discussing the strengths and weaknesses of each province.

Provincial overview

Ha Noi is the capital city of Viet Nam and is home to a growing population that exceeded 8.3 million in 2021, according to the General Statistics Office 2021 Yearbook. This marks an increase from 2020 with 8.2 million. As one of Vietnam's most populous cities, Ha Noi plays an essential role in the country's economic, cultural, and political landscape.

Bac Ninh is in the Red River Delta and is northeast of the capital city of Ha Noi. With a population of approximately 1.4 million in 2021, Bac Ninh has become an increasingly popular destination for both local and foreign investors due to its strategic location, favourable business environment, and growing economy. It has experienced notable development in recent years, particularly in manufacturing and services. This has supported residential demand and the emergence of new housing developments.

Hung Yen is to the east of Ha Noi and had a population of 1.2 million in 2021. It is a relatively small province, but one that has been gathering attention from investors and homebuyers in recent years due to its strategic location, growing economy, and new residential developments like Ecopark and Vinhomes The Empire and The Crown. “Manufacturing, construction, and service industries have grown in recent years, which has supported residential development. Infrastructure improvements also mean that the province is increasingly popular with those working in Ha Noi but affordable properties with both rural charm and urban conveniences”, said Savills.

Residential market comparison

Unsurprisingly, Ha Noi has the most developed residential market of the three provinces. According to Savills market report, in Q4/2022, primary apartment stock reached 20,333 with an average asking price of VND 47 million/m2 net sellable area (NSA). Villa/townhouse (VLTH) stock was 926 dwellings by the end of the year. Shophouses were the most expensive at VND 189 million/m2 LA.

In Savills’ view, surrounding provinces like Hung Yen and Bac Ninh are proving attractive areas for residential development and investment. Mega projects like Ecopark deliver affordable prices, diverse products, and expansive facilities like hospitals, schools, and commercial spaces. Unlike Ha Noi, Hung Yen and Bac Ninh have available land banks at more affordable prices, which allows developers to deliver more attractive and diverse products.  

According to Savills, Hung Yen published in March 2023, stock in Hung Yen reached 18,600 apartments. In Hung Yen, townhouses had most of the VLTH stock. Prices in Hung Yen were higher than in Bac Ninh because projects are closer to Ha Noi and offer superior products.

What is boosting the appeal of outlying provinces?

Savills said buyers would be increasingly interested in outlying provinces like Bac Ninh and Hung Yen because of greater affordability, economic growth, and improved quality of life.  

“Properties in Hung Yen and Bac Ninh are more affordable than in Ha Noi, which makes them attractive to first-time homebuyers or those looking to upgrade their current living situation. Affordability is particularly pertinent given the current credit restrictions and scrutinised lending conditions”, said Savills.  

Economic growth and development have supported increased investment in infrastructure and transportation, making outlying provinces more accessible and convenient for residents. Improved connectivity to major cities and transportation hubs has also created job opportunities. According to Savills latest Spotlight, Hung Yen report, between 2021 and 2025, 106 transportation projects in Hung Yen will receive a total investment of VND 14 trillion. Major Infrastructure development projects in Hung Yen include Ring Road 4, upgrading the Ha Noi - Hung Yen interprovincial route and building a road connecting the Ha Noi - Hai Phong Highway to the Cau Gie - Ninh Binh Highway. There are also plans to upgrade Noi Bai International Airport. Read more about Hung Yen’s infrastructure development here.  

Lastly, residential developments in outlying provinces often provide more diverse amenities and recreational areas like parks and lakes. They give a sense of rural charm while delivering modern conveniences.

In Ha Noi, buyers will enjoy comprehensive and strong infrastructure systems and the vibrance of the city. Buyers in Bac Ninh will enjoy lower prices and proximity to industrial projects, and in Hung Yen, buyers have access to diverse amenities at mega developments.

The residential markets in Ha Noi, Bac Ninh, and Hung Yen offer diverse options for homebuyers, each with its unique strengths and weaknesses. While Ha Noi remains the largest and most developed market in the region, Bac Ninh and Hung Yen are emerging as attractive destinations for buyers and developers alike. As Viet Nam's economy continues to grow and land banks in Ha Noi become scarcer, the demand for residential properties in Bac Ninh and Hung Yen is expected to rise, which means these provinces provide promising investment opportunities for those looking to enter or develop the real estate market in Viet Nam.