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As Vietnam has opened up to foreign investors since 2015, it would be strange if the capital didn’t get a big share of all the investments.
Hanoi is the political and cultural center of Vietnam, the city has seen a rapid growth the past years, and it’s projected to grow even more the coming decades.
With improvements in transportation and investments pouring in for infrastructure projects and manufacturing, you can’t turn your blind eye to this city.
In this article I explain the crucial info you need to know when buying property in Hanoi.
Hanoi’s property market
While Saigon is the business hub and one of the fastest growing cities in Vietnam, you shouldn’t neglect Hanoi.
Thanks to relaxed regulations on foreign ownership, foreign companies, expats and other foreign investors have opened up their eyes to this capital.
With a quickly growing population and increasingly bigger middle class, the locals help to drive up the demand as well. A long term investment in Hanoi will reap the yields.
Villas and terraced houses are popular in Hanoi
Villas and terraced houses in the urban areas are popular options for locals (and expats) in Hanoi, whilst foreigners find an interest in condominiums or condotels.
With rental yields that are a couple of percentage higher than in Bangkok, Singapore and Hong Kong, it can be a wise choice to buy a unit in a condotel, for rental incomes.
You should also bear in mind that foreigners cannot own land, which is collectively owned by the people. This makes a purchase of a landed house more risky compared to buying one or more units in a condo or condotel.
But you need to be cautious:
Even if Vietnam has opened up since 2015, foreigners have stumbled upon issues that can leave anyone frustrated.
For example, not long time ago, buyers in Saigon were rejected to receive their certificate of ownership, after they purchased their properties.
This can be a big struggle in an untapped country that recently opened up, even a Solicitor might have difficulties to help you in such a situation.
It’s important that you consult with a reliable Solicitor well in advance, before engaging in any property transactions.
Which areas grow the most in Hanoi at the moment?
Western and Southwestern parts of Hanoi have seen a rapid development recently, mainly thanks to investments in infrastructure, and a subway that will be ready in 2018.
You can make great deals if you find properties that are strategically located close to junction points, subway stations or train stations.
Look at the city planning and see where future investments and construction is planned.
Where should I buy property in Hanoi?
As mentioned, property investments in the Western and Southwestern parts can give you great yields, as massive infrastructure projects are projected here.
Let’s have a look at some of the fastest growing areas, where sales figures are high and where property developers plan to construct many more properties.
Tay Ho is located close to the river and considered to be a high-end area. Although it’s fairly relaxed, you’ll not have any problems getting downtown within a short distance.
There are many beautiful parks and green areas, making it a good choice for expats and families, in fact, many expats decide to live here.
Not surprisingly, properties and land areas are expensive here, but it’s also one of the most livable places in Hanoi.
Cau Giay is a smaller central area, located Southwest of Tay Ho. Much investment is planned here, for example, in properties and education, just to mention a few.
You’ll find the highest building in Vietnam here, the so called Keangnam Hanoi Landmark Tower.
The area also has many universities, like the National University, attracting many students.
You can make great money on rental yields of you decide to buy property close to universities, nowadays, Mainland Chinese also turns to Vietnam for overseas education.
Cau Giay is fairly more developed and don’t have as many colonial buildings as the central parts of Hanoi.
Previously its own city, Ha Dong merged with Hanoi to become one of its bigger districts.
Ha Dong was one of the focus areas for property buyers previously, the area experienced falling prices when the property bubble burst in Vietnam some years ago.
Again, the city is catching up and many new projects are planned here. If you plan to buy an off-plan property, Ha Dong might be your place.
If you decide to buy a property in Ha Dong, you’ll find a big supply of schools, good infrastructure, in fact, it currently caters many of the rich people in Hanoi.
Thanh Xuan is located to the South of Tay Ho and Cau Giay. It’s a newly developed area that see much potential in the coming years.
More affordable housing is planned in Thanh Xuan, not to neglect, in Ha Dong.
You should have a look at Thanh Xuan if you want to buy cheaper property, with profit potentials the coming years.
Nam Tu Liem (called South Tu Liem) and Bac Tu Liem (called North Tu Liem) was, until 2013, part of one area and called Tu Liem.
Both areas are still big and located in the Western parts of Hanoi.
If you’re Japanese, Nam Tu Liem might might be your choice, as the Japanese school is located here.
Nam Tu Liem is also where many property developers have initiated new projects recently.
Tu Liem is often mentioned in the media and will become one of the hot spots for property buyers the coming future.
Real estate agents
It’s important that you find a credible real estate agent that helps you through the Conveyancing process. As mentioned, foreigners recently had issues to receive their certificates of ownership.
Even if locals tend to buy property word of mouth, this shouldn’t be your option as a foreigner. Some of the most popular real estate agents in Hanoi are:
a. Westlake housing
b. Yes Housing
c. Tan Long
Do your research thoroughly and find a real estate agent that has helped foreigners before and that’s capable of speaking English.
Hanoi is on the rise, as the political center and capital of Vietnam, the city attracts a lot of local and foreign investors.
The Western and Southwestern have seen big growth recently, and more developments are projected for the future.
Hanoi will have its subway ready in 2018, making the potentials for price appreciations even higher.
As one of the fastest growing countries and with a population of 90 million that will increase even more, you simply can’t turn your blind eye to this city.
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