West Lake property prices almost double in 5 years

The Ngoai Giao Doan neighborhood in Bac Tu Liem District has seen apartment prices surging 70% from VND35 million ($1,480) to VND60 million per square meter in the last five years.

Prices of the nearby apartment complex, 6th Element, have risen by the same rate to around VND65 million.

Apartments at Starlake, where prices reached a record of VND70 million per square meter in 2019, have now surged to around VND105 million per square meter.

Hung, a broker in the area, said that apartments priced more than VND100 million per square meter used to be rare, but are now popular in both primary and secondary markets even though demand is low.

Villa and shophouses have also seen prices surging over 70% in recent years, he added.

Starlake shophouses are being sold at up to VND560 million per square meter, compared to VND320 million in 2020.

Data from property consultancy Savills show that property prices in the two districts of Tay Hoa and Bac Tu Liem have risen faster than Hanoi average since 2021.

Prices of an apartment on the secondary market (where an owner sells to a new buyer) have surged by 27% annually in Tay Ho and 21% in Bac Tu Liem, against a Hanoi average of 17%.

Hung said that prices have been growing strong in the last five years because of new infrastructure development such as schools and malls and high demand from a vibrant community of expats.

The completion of the eight-lane Nguyen Van Huyen Road in 2019, which connects the area with the business district of Cau Giay, also boosted prices.

Prices will likely stay firm thanks to the Lotte complex which is under construction, the completed Samsung R&D center, and a plan to build headquarters of 36 government bodies in the area.

Nguyen Chi Thanh, deputy chairman of the Vietnam Association of Realtors, said property in the two districts still have potential for development in the next five to 10 years.