Speaking at a real estate conference on June 2, Dr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association and Chairman of the Vietnam Association of Realtors, said Hanoi faces increasing pressure to restructure its urban development space in order to address growing challenges in the city center.

“The real estate market is entering a new stage. Property values can no longer be determined by short-term expectations or speculation fueled by planning rumors. Sustainable value must be built on clear legal foundations, synchronized infrastructure, real demand and genuine development capacity,” Dinh said.

Sharing a similar view, Dr. Nguyen Duc Kien, former Vice Chairman of the National Assembly’s Economic Committee and former head of the Prime Minister’s Economic Advisory Group, said Hanoi is entering a period of urban restructuring aimed at creating new growth poles for both the economy and the property market.

According to Kien, northern Hanoi is emerging as a strategic growth center thanks to its gateway location, regional connectivity, abundant land reserves and the presence of important industrial, logistics and economic corridors. Together with the development of a new administrative center and major infrastructure projects, the area is gradually evolving from an expansion zone into a new engine of growth for the capital.

Discussing the factors that determine real estate value, Kien identified economic growth as the first key driver, noting that it attracts residents and creates the foundation for land value appreciation.

A complete and transparent legal framework is another important factor that enhances the value of urban developments.

Credit availability also remains a critical driver of the property market. To maximize its effectiveness, coordination among developers, financial institutions and homebuyers is needed to create suitable financing leverage. Interest rates play a decisive role in investment decisions as buyers balance borrowing costs against their personal financial capacity.

Infrastructure expansion is another major source of value creation. However, Kien noted that value increases are not distributed evenly across an area and often depend on proximity to transport nodes such as metro stations and other mobility connections.

Transport connectivity itself has become a decisive factor in residential choice. Property value is increasingly measured not by geographical distance but by travel time. Homebuyers are paying closer attention to how many minutes it takes to reach workplaces, schools and leisure destinations rather than how many kilometers away they are located.

Significant price gaps across Hanoi

Changes in infrastructure and urban development priorities are already being reflected in property prices across different parts of Hanoi.

Pham Thi Mien, Deputy Director of the Vietnam Institute for Real Estate Market Research and Evaluation, said western Hanoi has undergone rapid development, with limited land supply, high price levels and a narrowing growth margin.

Townhouses and landed properties in western Hanoi currently range from VND250 million to VND400 million per square meter (US$9,600-US$15,400), while apartment prices start at more than VND80 million per square meter (US$3,100).

Within the new West Lake West administrative center area, landed residential properties in some projects are priced between VND480 million and VND1 billion per square meter (US$18,500-US$38,500), while apartment prices range from VND150 million to VND250 million per square meter (US$5,800-US$9,600).

Eastern Hanoi has experienced a rapid price cycle driven by the emergence of large-scale urban developments and population decentralization. According to Mien, landed property prices in the area currently range from VND180 million to VND300 million per square meter (US$6,900-US$11,500), while apartment prices exceed VND70 million per square meter (US$2,700), establishing a new and increasingly competitive price benchmark.

Northern Hanoi, meanwhile, recorded more than 1,400 new housing units launched during the first five months of 2026. Several low-rise residential projects in Me Linh are currently priced at around VND80 million to VND120 million per square meter (US$3,100-US$4,600).

“These price levels are only one-third to one-half of comparable neighboring areas and just around one-fifth of prices in the West Lake West administrative center. Me Linh may be the last major low-price zone remaining in Hanoi,” Mien said.

Le Dinh Chung, Deputy Chief Executive Officer of SGO Land, noted that investor preferences are changing significantly. While capital previously focused on short-term price appreciation opportunities, investors are now paying greater attention to community formation, management quality, integrated amenities and the practical value that a property can generate.

According to Chung, this trend is creating advantages for areas with well-planned urban development strategies, synchronized infrastructure and the ability to meet genuine housing demand. As central land resources become increasingly scarce and prices continue to rise, locations with substantial development potential may emerge as the next focal points for investment in the coming growth cycle.

Nguyen Le