Analysts from real estate consultants Savills Vietnam have advised investors to focus more on new urban areas in Hanoi, especially those with convenient infrastructure networks.

The city’s planned eight metro lines connecting the downtown area with outlying districts make the latter well worth considering, they told an online conference on September 3 updating businesses on market developments and opportunities for investment in major projects in Hanoi.

The housing market has suffered a short-term fall in demand due to COVID-19, but with the completion of infrastructure projects and the promise of profit, new housing projects boasting large numbers of apartments have been introduced.

According to Nguyen Duc Thiem, Savills’ sales manager in Hanoi, in the first half of this year some 29,400 apartments entered the market, of which more than 5,400 were sold, or about 19%.

Supply primarily came from seven projects, with prices rising slightly to US$1,460 per square metre, he said.

Meanwhile, the housing market in Vietnam as a whole still boasts potential due to high demand, as the country’s population is predicted to reach 120 million by 2050 with an urbanisation rate of 57%.

Over the remaining two quarters of the year, Savills Vietnam predicts that about 24,200 apartments from four existing and 18 planned projects in Hanoi will be introduced to the market. Of these, 68% are under construction.

North Tu Liem, South Tu Liem, Gia Lam, and Hoang Mai districts are home to most of these projects.

Savills also noted that with Vietnam’s experience in controlling COVID-19, the country’s real estate sector will not be seriously affected.