The price of apartments in Hanoi continues to rise unabated, showing no signs of cooling down. Particularly, apartment prices in the West Lake area maintain an impressive upward trend, with some projects reaching 260 million VND per square meter.
The price of apartments is seeing a significant increase in both the primary and secondary markets
According to a survey by Houseinhanoi.vn, the West Lake West area (Hanoi) consistently ranks among the top areas in terms of supply and transactions in the market. Over the past three years, from 2021 to the present, the price growth rate of apartments in this area has consistently been higher than apartments in other areas, averaging from 7-15%. Particularly, Western Westlake area is where major real estate developers converge, offering high-end products that establish their own brand identity for this area.
Data from Savills also indicates that from 2021 to the present, real estate prices in Western Westlake (covering Tay Ho and Bac Tu Liem districts) have increased more sharply compared to the overall market in Hanoi. Specifically, primary apartment prices in Tay Ho district have risen by 27%, and in Bac Tu Liem district by 21% annually, while the city-wide average increase is 17% per year.
For example, in the upscale apartment project HH9 within the Starlake West Lake urban area, if in 2018, the official first-phase selling price ranged from 50 to 65 million VND/m2, by 2020, in the final selling phase, the prices fluctuated between 52 to 70 million VND/m2. Surprisingly, at the current time (March 2024), there are apartments in this project with prices reaching 120 million VND/m2, and the developer has almost no units left for sale.
Another project in the West Lake area, Heritage West Lake, has seen a significant surge in prices since the developer’s initial sale of Duplex units at around 192 million VND/m2, which have now soared to 220 – 260 million VND/m2, an increase of over 35%.
As a result, the cheapest 2-bedroom units in this project are priced at 8.2 billion VND, while the secondary market sees an additional margin of 1-3 billion VND. The cheapest 3-bedroom units are priced at 13.5 billion VND, with a secondary market margin of 3-5 billion VND. Particularly noteworthy, a 4-bedroom unit has just set a record selling price of 48 billion VND.
With such high prices, owning a unit at Heritage West Lake is indeed not easy at this time. Ms. Hoang Anh, an investor currently eyeing the Heritage West Lake project, shared that she had researched and was very interested in a Duplex unit there priced at 220 million VND/m2. However, immediately after the sales consultation, the apartment was already reserved for purchase. “The apartments in this area have a beautiful location and good liquidity, so buyers within the price range quickly finalize their purchases,” Ms. Hoang Anh shared.
Both investors and end-users are heading to Westlake area
In recent days, the areas of Xuân La, Xuân Đỉnh, Phú Thượng, Đông Ngạc… in the district of Tây Hồ have been bustling with brokers, investors, and even discerning, affluent customers coming to explore property prices. On online real estate platforms, the Western Westlake area, as well as the Ciputra urban area, always rank at the top in terms of discussions and inquiries for buying apartments.
Explaining this bustling activity, Mr. Hoàng Phương, a sales specialist at a major real estate distribution firm in Hanoi, stated: “In recent years, the strong development of infrastructure, valued at ‘billions of USD’, along with social infrastructure improvements and breakthroughs in planning have attracted significant investments from major developers to the western area of West Lake (Hanoi), leading to the development of large-scale, high-quality projects. Naturally, these projects are becoming the top choice for both investors and those with real housing needs.”
According to Ms. Ngọc Ánh, Head of Priority Customer Relationship Management (PRM) at an international Swiss-operated brand in Hanoi, real estate in Western Westlake is experiencing high price increases due to its climate, environment, and convenience for work, which align well with the preferences of the specific customer base she manages.
“My customers are mainly expatriates working in diplomatic and multinational financial management fields in Hanoi. They love living in the Western Westlake area due to its strategic location (adjacent to ring roads, close to Noi Bai airport, about 4.5km from the city center of Ba Dinh…). Furthermore, it’s part of the comprehensive planning by government agencies, making it convenient for their specialized work, such as information about the relocation of the headquarters of 36 central agencies to Western Westlake.
“Especially, Western customers really appreciate living near West Lake because of the ensured security conditions, clean environment, and the established international living standards. Therefore, this area is usually their first choice when discussing accommodation services; only when it’s unavailable do they agree to stay in inner-city areas like Hoàn Kiếm, Ba Đình.
“In reality, we are constantly searching and surveying property prices, especially high-rise apartments in the Western Westlake area. Currently, prices in this area are increasing significantly, but they still remain quite suitable for the ‘willingness to spend’ and the demand for enjoying luxury living spaces of the customer group we manage,” Ms. Ánh shared.
Not only are indirect customer groups mentioned above interested, but families (end-user customers) are also paying special attention to real estate prices in Western Westlake. According to Mr. Phúc Khang’s family (currently residing in Hai Ba Trung district – Hanoi, looking to move to the Western Westlake area for the convenience of their large family’s needs, with elderly members requiring fresh air), they have been seeking help from brokers all week to find a condominium with around 4 bedrooms, a spacious view, priced around 7-8 billion VND. Even though they are not in a rush to move in immediately, it’s still very challenging. In fact, some developers and agencies have turned to “holding back stock” and are not selling to wait for the next price increase.
Mr. Khang shared: “My family spans three generations, and my parents are elderly, so there’s a strong need to find a spacious home with green spaces, wide internal areas for my parents to breathe fresh air and exercise daily, while providing ample space for my children to play freely.”
Currently in Hanoi, real estate near West Lake is priced high, and it’s no surprise that most projects with the highest prices in the market are located near West Lake. With limited available land in this area, those looking to buy a house almost always have to target rare projects that are under construction.
In addition to domestic investors, a group of “loyal” customers who choose Western Westlake as their residence and investment destination come from countries around the world, as the historical significance of this area has long been defined as the “land of global citizens.” Furthermore, in the amended Land Law (effective from January 1, 2025) recently passed by the National Assembly, a notable change is the expansion of land use rights for foreigners.
Experts believe that this change will bring more investment opportunities for overseas Vietnamese and foreigners. This is also a driving force for market development, as real estate in the Western Westlake area is always of interest to this customer group. Prices of apartments in Western Westlake will continue to see significant growth in the near future. Particularly, projects with full amenities and the involvement of international management units will continue to be destinations for high-end communities, driving prices upward.
