
[CafeF] Investors' Move to "Exit Hot Zones" as Inner-City Real Estate Prices Soar

The National Assembly has passed the Law Amending and Supplementing Certain Provisions of the 2024 Land Law, the 2023 Real Estate Business Law, and the 2023 Housing Law. Experts believe the new law will have a positive impact on the real estate market. Investors are in a ‘sprint’ to explore provincial or suburban projects due to concerns that prices will rise.
The price levels of real estate products will rise significantly
Discussing the Impact of the 2024 Land Law, the 2023 Real Estate Business Law, and the 2023 Housing Law on the Market Upon Their Official Enforcement, Experts Predict Property Prices Will Rise
Experts believe that when these three real estate-related laws take effect on August 1—five months earlier than initially planned—the market will swiftly move out of a waiting state. This shift will enable a significant capital flow to be disbursed as public investment accelerates.
Regarding the real estate market outlook, many experts predict that property prices will rise sharply, particularly in areas experiencing robust infrastructure development and industrial zone expansion.
Ahead of August 1, the Hanoi real estate market has already witnessed notable price increases. From Q1 2023 to Q2 2024, apartment prices in Hanoi rose by 31%, private houses by 32%, and residential land by 19%, according to a report from Batdongsan.com.vn. The average primary market price for apartments in Hanoi is currently around 60 million VND per square meter, with some units in Nam Từ Liêm and Gia Lâm reaching 80–100 million VND per square meter.
Despite soaring prices, experts predict that Hanoi will still face a shortage of around 50,000 apartments by 2025. This supply scarcity is expected to fuel prolonged price hikes, making it unlikely that apartment prices will see any substantial decrease.
Looking ahead, Hanoi’s apartment prices are forecasted to continue rising by 5–10% on average in the coming years. This upward trend is projected to persist through 2025 and 2026, as the short-term supply of apartments in Hanoi remains largely unchanged. The primary reasons are the increasingly limited land available for development in the city center and a growing tendency among residents to relocate to suburban areas.
Investor's Move to "Escape the Hot Zone"
According to data from the Vietnam Association of Real Estate Brokers, 85% of real estate (RE) transactions in the Hanoi market during the first quarter of 2024 took place outside the central districts. This indicates that, as property prices in central areas become increasingly inaccessible, buyers are shifting their attention to suburban and provincial areas, where prices remain significantly lower. In the near future, satellite cities and suburban provinces such as Bac Ninh, Vinh Phuc, and Phu Tho are expected to be the “target” of investors.

Recent observations in the Phu Tho real estate market reveal that an increasing number of investors are exploring opportunities in this area. Ms. Luong Nguyet (38 years old, Hanoi) had initially researched various apartment projects in the city center but found that prices had risen significantly, making her hesitant to invest at the moment. Recently, she has been considering a project in Phu Tho, which requires a smaller investment but offers promising rental opportunities. In her view, Phu Tho presents a potential market worth serious consideration.
Phu Tho is home to a vast cultural heritage, including the Hung Kings’ Temple and over 200 festivals. Every year, millions of visitors travel to the region for worship and tourism. For example, during the 2024 Hung Kings’ Commemoration Festival, Viet Tri City welcomed over half a million tourists. Additionally, the government has plans to develop Viet Tri into a Festival Tourism City, reinforcing the growing demand for accommodation infrastructure to serve visitors.
Moreover, experts predict that real estate prices are likely to rise in provinces with strong industrial development. This has prompted many investors to shift their focus to Phu Tho, which is forecasted to become the next industrial hub in northern Vietnam. The province currently hosts seven major industrial parks and 27 industrial clusters, attracting businesses from South Korea, China, Japan, Singapore, the U.S., and India. These areas employ over 14,000 highly skilled foreign workers and experts, as well as nearly 50,000 young workers—the so-called “golden generation of residents”—with numbers increasing each year.

Foreign professionals typically have high living expenses and are willing to pay between $800 – $1,000 per month (approximately 20 – 25 million VND) for housing. With over 14,000 foreign experts working in Phu Tho’s industrial parks—a number that continues to rise—there is a massive untapped rental market. However, the current supply of rental properties for foreign professionals remains limited and fragmented, failing to meet the growing demand.
Recognizing this potential, the Phu Tho Provincial People’s Committee has approved the VIC Grand Square project—officially named Hung Vuong Square Commercial, Financial, and Multi-Functional Apartment Tower. This landmark development is strategically located next to Hung Vuong Square, within the limited land reserve of Viet Tri’s economic and administrative center.
VIC Grand Square is set to become the first multi-functional residential project of its kind in Phu Tho, offering 1,478 apartments with premium amenities, high security, lush green spaces, and exclusive services tailored for elite residents and foreign professionals.
This project is particularly attractive to investors, as it aligns with the “3-in-1” investment model—suitable for living, working, and renting out. With a starting price of just 1.1 billion VND per unit, VIC Grand Square offers a rare and affordable opportunity in today’s market.
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