According to Savills' latest report, the northern province of Hung Yen will be an alternative option to meet housing demand in the vicinity of Hanoi.
|Hung Yen Province will attract new investment and employment that will increase the demand for housing. Photo: Savills|
According to Savills' experts, Hung Yen, located in the northern key economic region and the Hanoi Capital Region, is emerging as an attractive destination for investors and occupiers as it focuses on improving infrastructure and future housing supply, probably increasing its competitiveness compared to other satellite cities or surrounding provinces.
Do Thu Hang, Senior Director, Advisory Services, Savills Hanoi, said the surge in housing demand in Hung Yen is due to three main factors. Housing prices in the capital are still high, especially in the low-rise segment, making homeownership more difficult than before. Meanwhile, prices in Hung Yen are lower than in Hanoi.
She said the average primary asking price of VND41 million (US$1,743) per square meter of net saleable area for apartments is 14% lower than in Hanoi, but 110% higher than in the northern province of Bac Ninh.
Villa/townhouse in Hung Yen averages VND149 million (US$6,336) per square meter mainly due to the entry of mega projects, 17% lower than in Hanoi but 77% higher than in Bac Ninh. Prices in Hung Yen were higher than in Bac Ninh because the projects are closer to Hanoi and offer better products.
Hang emphasized that this would create a driving force for housing demand in the area. Especially the elderly who don't need to travel much are interested in housing projects in Hung Yen with good air quality, green living environment, and diverse amenities.
As one of the focal points connecting Hanoi with the northern provinces, the locality is centralizing resources and accelerating the implementation of infrastructure projects. Between 2021 and 2025, 106 transportation projects will receive a total investment of VND14 trillion ($595.6 million), accounting for 12% of Hung Yen's GRDP in 2021.
The National Assembly has decided to spend VND85.8 trillion ($3.65 billion) on Ring Road 4 to connect Hanoi with neighboring provinces. The 113km road will cover 20km through four districts of Hung Yen, including Van Giang, Khoai Chau, Yen My, and Van Lam. It will support mega urban developments such as Ecopark and is expected to open to traffic in 2027.
Other major infrastructure projects include the upgrading of the Hanoi-Hung Yen interprovincial highway and the construction of a road connecting the Hanoi-Haiphong highway to the Cau Gie-Ninh Binh highway. Noi Bai International Airport is only 45 minutes from Hung Yen and will have a new and expanded terminal by 2025. This will increase the airport's capacity, improve connectivity to Hanoi and surrounding areas such as Hung Yen, attract new investment and jobs, and increase demand for housing, according to Savills Hanoi.
Especially, robust industrial growth also increased demand for housing in the northern province, mainly from expats, workers, and investors. Hung Yen will cater to 50% of the housing demand of industrial park workers by 2025, equivalent to 170,000 social apartments. According to the province’s Housing Plan, 7,000 apartments are needed until 2025. From 2023 onwards, future projects will add 95,300 units.
The Hung Yen Housing Plan aims to have more than 10 million square meters of new housing by 2025, of which net floor area per capita is expected to reach 29.1 square meters. Future supply will target occupiers and investors from Hanoi and surrounding provinces.