Real estate experts predict that Hung Yen will "share" the burden of housing demand with Hanoi in the near future.
A view of Ecopark urban residential area (Photo: Ecopark)
With prominent advantages, the northern province of Hung Yen offers many opportunities for real estate developers at all segments.
Do Thu Hang, Senior Director of Research and Consulting Department of Savills Hanoi said the increasing demand for housing in Hung Yen is driven by three main factors.
Firstly, the high housing prices in Hanoi make it difficult for people to own a house, especially in the low-rise segment. Meanwhile, the average price of apartments and townhouses in Hung Yen is 14% and 17% lower than in Hanoi respectively, which creates a motivation for the demand to shift to this market.
Illustrative image (Photo: thoibaonganhang.vn)
The next factor comes from the demand to expand residential areas away from the central area of Hanoi where the population density is quite high. Currently, elderly customers who do not have much need for mobility are interested in housing projects in Hung Yen. The demand is towards projects with good air quality, green living environment, and diverse utility systems.
With its geographical location adjacent to Hanoi, Hung Yen is likely to become a bridge between the capital city and other provinces and cities. Furthermore, the developed infrastructure has shortened the travel time from Hung Yen to Hanoi's central areas, so home buyers from neighbouring provinces can consider Hung Yen as an alternative choice.
The housing development programme in Hung Yen aims to have over 10 million sq.m of new housing area by 2025, targeting both tenants and investors from Hanoi and other provinces and centrally-run cities.
In addition, the housing supply will also increase along with the urbanisation rate of Hung Yen, from 17% in 2022 to an estimated 48% in 2025, with about 108,000 new housing units expected to join the market by 2025.
Therefore, the future affordable housing supply in Hung Yen will somewhat ease the burden of the housing demand on Hanoi.