Hanoi started a new era of expansion in 2008, becoming one of the world's 17 biggest cities by land area. The urban development environment of Hanoi has changed dramatically in the last 15 years. Among these is the robust growth of the capital city's two poles to the west and east, with well-planned metropolitan districts, extensive service networks, and synchronized infrastructural development.

Real estate situation in the Eastern and Western poles

Earlier movements in the western section of Hanoi have made the urban landscape more unique. Furthermore, numerous government institutions, industries, and corporations have relocated to the West, resulting in a concentration of thousands of local and foreign businesses. This has resulted in a migratory tendency to settle in this area.

The construction of highways such as To Hieu - Le Van Luong, Ring Road 2, Ring Road 3, and the future Ring Road 3.5 and Ring Road 4, as well as urban train projects No. 2A and No. 3, has provided momentum for the development of real estate developments in this region. Along these roads in the Western area, notable large-scale developments include The Manor Central Park, Vinhomes Green Bay, Vinhomes Thang Long, and Milan Ha Noi City.

According to Savills, the Western area, especially the districts of North Tu Liem, South Tu Liem, and Cau Giay, has continuously held the dominant market share in terms of supply, accounting for around 30% from 2011 to the present. It is also the location with the most office supply in the city, accounting for half of the market share, or 873,700 square meters.

Meanwhile, the extensive infrastructure is creating development potential on the city's eastern outskirts. According to the Capital Transport Master Plan for 2030 and the Vision for 2050, Hanoi will build ten more big bridges over the Red River. Vinh Tuy 2 Bridge, Tran Hung Dao Bridge, Tu Lien Bridge, New Thang Long Bridge, Thuong Cat Bridge, and Hong Ha 9 Bridge are among these projects.

Furthermore, the completion of infrastructure projects such as Ring Road 2 and the projected Ring Road 4 would shorten travel time from Hanoi to adjacent places, making the Eastern section more desirable for the requirements of both local and nearby citizens.

Restoring balance

Furthermore, historical inner-city planning was implemented in 2021 with the intention of eliminating roughly 215,000 persons between 2020 and 2030. Six sub-area urban planning initiatives total about 2,700 hectares. The major goal is population management, with the goal of reducing the population from 1.2 million (in 2009) to an estimated 672,000 while strengthening social and technical infrastructure.

The demographic migration out from the historic core city will benefit housing projects. Because of good infrastructural conditions and convenience, several inhabitants from the historic town area have relocated to the nearby districts and the rising Eastern region.

The share of housing supply in the Eastern region of the country has risen from a very low level in 2011 to 12% in the first half of 2023. In recent years, this area has also witnessed the most substantial expansion in low-rise production, going from 8% of Hanoi's supply share in 2014 to 15% in the first half of 2023.

There are disparities in the primary prices of home items between the two places. According to Savills, the average main apartment price in the Western section reached 58 million VND/m2 in the first half of 2023, while it was roughly 48 million VND/m2 in the Eastern part. In the second quarter of 2023, the principal pricing for low-rise items were 157-225 million VND/m2 in the West and 158-168 million VND/m2 in the East. According to Ms. Do Thu Hang, the price differential between the two places is due to the fact that the Eastern area expanded more quickly and later, thus there is still a pricing disparity between the two areas.

Looking ahead, new supply in the Western and Eastern regions will account for 40% of the market share for apartments in the next years, while the percentage for low-rise homes will be less important due to more limit ed land resources.

Furthermore, real estate goods in these areas, as well as in Hanoi as a whole, will continue to develop. Internal utilities will be prioritized in apartment complexes. The product structure will grow more diversified, with studios, duplexes, penthouses, and dual-key apartments among the options. International investors will also participate in the market, and branded apartment items are increasingly making their presence known.