31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Real estate
Hanoi has own attractions to investors: Savills
Linh Pham 15:24, 2020/07/14
The city’s growing population fuels demand for residential property.

In the real estate sector, Hanoi has appeared to become a key part of Vietnam’s growth story as the city has “its own attractions”, according to global real estate services provider Savills.

 Hanoi has its own attractions. Source: Savills

With more than 1,000 years of history, Hanoi is Vietnam’s cultural center as well as its administrative hub, Savills said in a recent analysis.

The French colonial era left Hanoi with a number of historic buildings and tree-lined boulevards that have garnered it the title of the Paris of the East. The population of 8.1 million doubles if the nine surrounding provinces are taken into account.

In addition, Hanoi benefits from Vietnam’s thriving economy: 2019 GDP growth was 7.02%, above the 2019 government target of 6.6% to 6.8%. Retail sales were US$163 billion, up 13% on year.

Troy Griffiths, deputy managing director of Savills Vietnam, said “Hanoi offers a wealthy population by Vietnamese standards and that population is growing rapidly. The city’s infrastructure is rapidly evolving, with metro lines, roads and bridges which will improve connectivity and boost real estate values.”

Meanwhile, the city’s stock of modern real estate is growing and domestic developers are maturing to deliver international grade assets, Griffiths adds.

 Hanoi's apartment sales in 2015-2019. Source: Savills Research & Consultancy

Last year, Japan’s Sumitomo Corporation joined forces with Vietnam’s BRG Group to develop a 272-ha smart city in Dong Anh district, north of the city center. The extension of Metro Line 2 from central Hanoi to Noi Bai International Airport will pass through the project site, which will be home to a new station.

Other foreign developers and investors active in Hanoi include Keppel Land, CapitaLand, Mitsubishi Estate, Gaw Capital Partners and Hongkong Land.

The city’s growing population fuels demand for residential property. Apartment sales rose 26% to nearly 40,000 in 2019, with new supply of 37,700 units. Supply looks steady, with 124,000 units to be delivered over the next three years. Prices are around 30% lower than in Ho Chi Minh City. Supply of new villas and townhouses was limited last year but more is expected over the next two years.

Hanoi’s retail stock grew 14% to 1.6 million square meters (sq.m) in 2019 and rents fell 1% over the year, despite almost full occupancy in all retail types. The office sector grew by 10% to 1.8 million sq.m and average rents rose 5% in 2019. Vacancy in B and C grade offices is almost zero. A total of eight projects, comprising 169,000 sq.m will be completed this year.

The city has 9,800 rooms in 65 hotels, with a further 1,200 to be delivered this year, while 48 projects with 9,100 rooms are in the pipeline.

Hanoi is Vietnam’s most popular tourist destination and the 15th most visited city in Asia Pacific, according to research by Mastercard.

RELATED NEWS
TAG: Hanoi attraction investor Savills 1 000 years
Other news
17:34, 2022/34/05
Hanoi to develop five social housing projects
The city would continue to explore opportunities to build new social housing projects to meet growing public demand.
08:57, 2022/57/03
Apartment prices in Hanoi are at a record high
The supply of budget apartments in Hanoi stood at the lowest level in the past five years.
21:20, 2022/20/01
Businesses commit to building social housing projects for low-income earners
The Vietnamese Government has called on the business community to develop social housing projects and make suggestions to remove difficulties and obstacles in the implementation of projects.
14:16, 2022/16/27
Private equity funds seek Vietnam’s real estate M&A deals
Office, industrial, and project development land account for 39%, 35%, and 26% of the total invested capital in Vietnam, respectively, in the first six months of 2022.
15:05, 2022/05/20
Hanoi needs favorable policies to promote social housing projects
The city expects to build another 44 million square meters of floors in the 2021-2025 period to meet the growing demand for housing from the locals.
17:00, 2022/00/08
Hanoi anticipates US$38 billion for housing development in 2021-2030
In the next ten years, Hanoi would allocate 1,868 hectares for housing development, partly accommodating laborers in industrial parks.