In the face of soaring real estate prices in Hanoi, investors are increasingly looking beyond the city’s borders for opportunities, particularly in neighboring provinces where prices still have room to grow. This shift in investment strategy has become pronounced over the last few months, as many investors seek more affordable options.
Nguyen Tan, a real estate broker in Hanoi, has recently shifted her focus from selling properties in the capital to those in surrounding provinces. "For the past two months, I’ve been actively guiding clients from Hanoi to explore land lots, adjacent houses, and villas in provinces like Vinh Phuc, Bac Ninh, Bac Giang, and Thai Nguyen," she explained. Since the beginning of the year, Tan has successfully closed deals for eight clients, with six completing transfer procedures and two currently placing deposits on projects in these neighboring areas.
The trend of moving investments from Hanoi to more distant sites began to take shape at the end of last year, becoming more evident recently, especially following the merger of several provinces. This administrative change often leads to increased land prices, which has piqued investor interest. "Currently, property prices in many localities are still relatively low, making them attractive for investors with capital ranging from 10 to 20 billion VND. For instance, a urban project in Bac Ninh is priced between 100 and 150 million VND per square meter, which is significantly lower than similar projects in Hanoi," Tan added.
On April 19, 2025, at the Hong Hac urban area project in Thuan Thanh town, Bac Ninh province, the developer Phu My Hung launched a project that attracted hundreds of investors from Hanoi seeking information. Nguyen Minh, a seasoned real estate investor, noted that the current prices in Hanoi are prohibitively high, prompting many to explore neighboring regions where prices are still manageable. "Although the provincial real estate market isn’t particularly vibrant right now, it’s just a matter of time. I’m looking at the Hong Hac urban area, which is only a 30-minute drive from Hanoi, to find good investment opportunities. The project hasn’t officially launched yet, but the expected prices are about half of those in urban areas like Gia Lam in Hanoi," he remarked.
The Vietnam Real Estate Brokers Association (VARS) reports that investment capital is increasingly flowing towards areas with softer land prices and promising potential for appreciation. Instead of engaging in short-term speculation, many investors are opting for a strategy of accumulating land in suburban areas, anticipating future development as infrastructure improves.
Recent data from Batdongsan.com.vn indicates that in February 2025, searches for land plot products across the country surged by two to three times compared to the previous month, particularly in regions with ongoing infrastructure investments and real estate projects. Le Dinh Chung, a member of VARS’s market research team, stated, "Projects in central areas often face legal challenges and prolonged implementation timelines, forcing investors with limited financial resources to seek potential markets in the suburbs. This trend has been observed in previous real estate cycles as well."
Moreover, the government and local authorities are actively promoting the development of satellite urban areas and expanding urban spaces to alleviate population pressure and traffic congestion in city centers. This strategy enhances the appeal of real estate in suburban and neighboring localities.
In a related report from Batdongsan.com.vn, the demand for real estate in Hanoi surged by 27% in March 2025 compared to February, particularly for low-rise properties such as villas, townhouses, and shophouses. The absorption rate for newly launched low-rise projects reached 52%, reflecting a robust market demand.
Among the notable developments is the GIA by KITA project, which is introducing the GIA22 sub-division, considered the centerpiece of the entire area, featuring 164 villas in a luxurious Mediterranean style. Located opposite Lotte Mall Tay Ho and just minutes from key traffic routes like Vo Chi Cong, GIA22 is poised to attract both residents and investors.
The GIA by KITA project spans nearly 22 hectares and is situated adjacent to a 63-hectare park and several prestigious international schools such as UNIS, SIS, and Hanoi Academy. The development is characterized by its elegant European architecture, private living spaces, and lush green landscapes, catering to high-end clientele seeking quality living environments.
As the project unfolds, GIA by KITA is emphasizing its GIA22 sub-division, which is seen as the jewel of the development. The limited availability of villas in urban areas makes GIA by KITA an attractive long-term investment opportunity. The project's strategic location and excellent infrastructure connectivity, including future metro lines, underpin its potential for sustainable value appreciation over time.
Bui Tan Tra, Deputy Director of the partner distribution channel at Dragon Capital, shared insightful advice during an investment seminar: "Don’t put all your eggs in one basket, but if you do, choose the right basket." In the current climate, where legal transparency, strategic location, and scarcity are critical factors in asset valuation, projects like GIA by KITA stand out as reliable investment options. The project is not meant for short-term speculation but rather aims to attract investors with its long-term value retention capabilities and sustainable growth potential.
As the real estate market continues to evolve, it’s clear that both urban and suburban properties present unique opportunities. Investors are adapting their strategies to navigate the changing landscape, seeking properties that promise stability and potential growth in an uncertain economic environment.
