The future supply in both the west and the east will account for 40% of the market share of residential units in Hanoi.

Expanding the administrative boundaries of Hanoi 15 years ago was a critical step in seizing the opportunity for greater competitiveness and stronger growth.

Foreign investors are actively exploring investment opportunities in the local real estate market, presenting chances for domestic firms if they can leverage this potential.

The amended Housing Act lacks provisions on the life span of condominiums, which may cause problems for the authorities when it comes to renovating the buildings.

Hanoi is expected to have 44 million square meters of new housing in the 2021-2025 period, which equates to a per capita floor area of 29.5 square meters.

Despite the high demand for housing, the transaction volume stays low due to the high prices compared to people’s average income.

In 2022, the average per capita floor area in Hanoi is estimated at 27.6 square meters, assuming the city completes ongoing housing projects.

It is expected that by late 2022, real estate demands would continue to stay low and investors may be forced to lower prices to attract buyers.

Rising housing prices in Hanoi were mainly due to scarce supplies and higher prices of construction materials.