Place

The Great Hanoi Exodus: Soaring Prices Push Residents to the City’s Fringe

21 March, 2025

INSIDE VIETNAM: THE GREAT HANOI EXODUS TO THE SUBURBS

By John Doe

A growing number of Hanoi residents are choosing to leave the bustling city behind and settle in the suburbs or neighboring provinces. This trend is particularly evident in the story of Hoang Van Duy, a 34-year-old former office worker from Cau Giay District.

Duy and his wife had shared a long-cherished dream of owning an apartment in the heart of the capital. However, as years passed and housing prices soared, their dream began to feel increasingly out of reach. “We felt trapped,” Duy recounted. “The prices just kept climbing, outpacing our income. It seemed like our dream was slipping away.”

The allure of the suburbs: Many are drawn to the quieter and more affordable lifestyle offered by Hanoi’s neighboring areas. *Photo: Huu Chanh/ Kinh te & Do thi Newspaper*

Finally, they made a bold decision: to purchase a plot of land in Thanh Oai, a suburban district of Hanoi, for a fraction of the cost of city living. “It was a difficult choice,” Duy admitted, “but it felt like our only option.”

Duy’s experience is not unique. According to a recent report by Savills, a prominent global real estate services company, housing prices in Hanoi have surged by an average of 30% since 2023. This has placed a significant strain on the finances of many residents, making the dream of homeownership seem increasingly distant.

The report reveals that apartment prices now range from a substantial US$2,200 to a staggering $4,350 per square meter. Simultaneously, the cost of residential land in central districts has skyrocketed to between $8,700 and $13,000 per square meter. For context, a typical 70-square-meter apartment in the city would cost between $152,000 and $304,000—a far cry from affordable for most families.

It is not just the financial aspect that is driving this exodus. Many are lured by the promise of a better quality of life in the suburbs. One of the key advantages is the improved living environment, particularly when it comes to air quality. According to the Institute of Environmental Science and Climate Change, the air in Hanoi’s suburbs, including districts like Thach That, Ba Vi, and Soc Son, is notably cleaner and healthier than in the congested city center.

Nguyen Van Nam, a technical engineer, can attest to this. Having lived in the busy Hai Ba Trung District for years, he made the move to the suburbs and noticed a significant improvement in his family’s health. “My son used to struggle with allergies due to the pollution in the city,” Nam shared. “Since relocating to the outlying district of Hoai Duc, we’ve all been healthier and happier. The air is fresher, the noise levels are lower, and we’re finally getting a good night’s sleep.”

In addition to the health benefits, there is a sense of relief from the stresses of urban life. A survey by Vietnam National University found that a significant majority (68%) of respondents felt a noticeable reduction in anxiety after relocating to the suburbs or nearby provinces. It seems that the quieter pace of life and escape from the hustle and bustle of the city hold great appeal.

This sentiment is echoed by 27-year-old Hoang Thanh, an office clerk in Hanoi. “I used to think that staying in the city was essential for my career,” she said. “But now, seeing friends move back to their hometowns and still have successful careers, I’m reconsidering. The cost of living in the city is high, and it can be exhausting.”

The idea of a more relaxed and affordable lifestyle is enticing, and it’s not just a pipe dream. A study by the Vietnam Institute of Economics revealed that over 60% of city dwellers would be open to relocating to suburban or rural areas if there were sufficient job opportunities and infrastructure. Dr. Nguyen Minh Phong, an urban economics expert, shares this vision for Hanoi’s future, predicting that the city will continue to expand its satellite cities to accommodate this growing desire for a different kind of lifestyle.

From a financial perspective, the suburbs offer a compelling case. Data from the General Statistics Office indicates that daily expenses, transportation costs, and food prices are, on average, 20-30% lower in Hanoi’s suburbs when compared to the city center. This makes a significant difference in the long run, especially for young families or those starting their careers.

Nguyen Hong Hanh, a garment factory worker in Thanh Oai rural district, can attest to this. “My husband and I bought a 45-square-meter plot of land in late 2023,” she shared. “At the time, we could just about afford it, but now, the price has doubled. We feel lucky to have made the move when we did.”

The rise of remote work has also played a role in this shift. A survey by Navigos Group found that nearly half (45%) of employees in Vietnam desire flexible work options, allowing them to live farther from urban centers without compromising their careers. This trend is likely to continue, further fueling the appeal of suburban life.

While Hanoi remains a vibrant and alluring metropolis, the reality is that for many, owning a home within its borders is becoming increasingly unrealistic. As housing prices continue to climb and the stresses of urban life take their toll, the suburbs are offering a welcome alternative. This shift is likely to shape the future of Hanoi, creating a more balanced and sustainable development that caters to the changing needs and aspirations of its residents.