Hanoi's urban shift as price hikes drive residents out of the city

THE HANOI TIMES — Hoang Van Duy, 34, a former office worker in Hanoi’s Cau Giay District, reached a breaking point after years of saving for a home. He and his wife had long dreamed of owning an apartment in the capital, but as housing prices continued to rise, their dream slipped further away.

"The longer we waited, the higher the prices became, while our income couldn’t keep up. Finally, we decided to buy a plot of land in Thanh Oai, a suburban district of Hanoi, for a third of what we would have paid in the city," Duy told The Hanoi Times.

Duy’s story is becoming increasingly common as more and more Hanoi residents are seeking a quieter, more affordable lifestyle in the suburbs or neighboring provinces. With skyrocketing real estate prices and the pressures of urban living, the suburbs offer a compelling alternative.

According to a report by Savills, a global real estate services company, housing prices in Hanoi have risen by an average of 30% since 2023. Apartment prices are now ranging from US$2,200 to $4,350 per square meter, while residential land in central districts has reached between $8,700 and $13,000 per square meter.

For many residents, this makes owning a typical 70-square-meter apartment, which could cost anywhere from $152,000 to $304,000, seem unattainable. With an average monthly income of $870 to $1,300, many Hanoi families find themselves priced out of the market.

But affordability isn’t the only reason people are packing up and leaving Hanoi’s inner districts.

One of the main draws of suburban living is the better living environment. According to the Institute of Environmental Science and Climate Change, air quality in Hanoi's suburbs, such as Thach That, Ba Vi, and Soc Son districts, is significantly better than in the city center, where traffic congestion and particulate matter (PM2.5) pollution often exceed World Health Organization (WHO) safety limits.

Nguyen Van Nam, a technical engineer who lived for years in Hai Ba Trung District, said moving to the suburbs has brought a perceptible difference in his family's health. "Back in the city, my son always had allergies because of the pollution. Since we moved to the outlying district of Hoai Duc, the air is fresher, there's less noise, and we all sleep better."

Aside from the cleaner air, many former city dwellers say that life outside of downtown Hanoi is simply less stressful. A survey by Vietnam National University found that 68% of people who had relocated said they felt noticeably relieved of anxiety after moving to the suburbs or nearby provinces.

Hoang Thanh, 27, a migrant who works as an office clerk in Hanoi, admitted that she's rethinking her future. "Fresh out of college, I thought I had to stay in the city to build a career. But lately, I've seen friends moving back home, landing stable jobs as civil servants and enjoying life closer to family. It's making me have second thoughts. It's expensive to live in the city and everything seems rushed."

A study by the Vietnam Institute of Economics shows that more than 60% of city folks would consider moving to suburban or rural areas if there were enough job opportunities and infrastructure. Urban economics expert Dr. Nguyen Minh Phong believes Hanoi's future lies in the continued expansion of satellite cities. "Over the next decade, Hanoi will continue to develop its suburban settlements. This will relieve pressure on the city center and provide a more sustainable housing model for residents."

Suburban life is appealing from a financial standpoint. The General Statistics Office reports that daily expenses, transportation, and food costs are typically 20-30% lower in Hanoi's suburbs than in the city center.

Nguyen Hong Hanh, originally from neighboring Hoa Binh province and now a garment factory worker in Thanh Oai rural district, said she and her husband bought a 45m² plot of land in Thanh Cao Commune in late 2023 for just over $34,800. "We could barely afford it then, but now, a year later, the price has doubled. If we had waited a little longer, we wouldn't have been able to buy anything."

The advent of remote working has only accelerated this shift. A survey by Navigos Group found that 45% of employees in Vietnam want flexible work options that allow them to live farther from the city without sacrificing their careers.

Hanoi remains a vibrant economic and cultural hub, but for many, owning a home here is becoming an unattainable dream. As housing prices soar and urban stress takes its toll, migration to the suburbs is emerging as a viable alternative-and one that is likely to grow.

This shift could become more pronounced as suburban infrastructure develops and can accommodate the influx of new residents. Without careful planning, today's migration trend could become tomorrow's urban sprawl problem. But if kept under control, this movement could help Hanoi develop in a more balanced way, one that supports both economic growth and a higher quality of life for its residents.