Villas in Hanoi see price increases
The Hanoi real estate market in the first half of this year saw increases in villa and townhouse prices, although the market was still slow, according to a Savills report into the housing market in the capital released on July 11.
In Hanoi, new villas in high-end market projects showed prices increasing by 9% quarter-on-quarter to VND178 million (US$7,007) per sq.m.
Townhouse prices decreased by 2% quarter-on-quarter to VND188 million per sq.m, with higher priced units already sold and only affordable units remaining.
Shophouse prices increased by 3% quarter-on-quarter to VND288 million per sq.m due to the reduced availability of cheap shophouses and price adjustments.
Primary prices remained high to incentivise the secondary market. Secondary villa prices were 8% lower than primary prices, while townhouses were 5% cheaper.
However, "performance was slow", said Mathew Powell, director, Savills Hanoi.
Sales in the second quarter fell by 40% quarter-on-quarter, but rose by 5% year-on-year, reaching a total of 111 dwellings, and quarterly absorption was only 18%. Newly launched properties were 48% absorbed, fell by 15% quarter on quarter and 3% year on year.
The majority of primary transactions were still in Ha Dong district with 61%, due to infrastructure projects aimed for completion such as Le Quang Dao road expected to operate in the last quarter of this year. Hoang Mai and Hoai Duc districts each followed with 14% and Thuong Tin had 9%.
"Amended laws and infrastructure development are expected to begin to provide momentum,” added Powell.
The real estate market is showing signs of recovery, thanks to the amended laws which were passed in early 2024 and effective early from August 2024, as well as infrastructure developments and large supply from mega projects in the next few years, according to Savills.
Thirteen projects will supply a total of 2,951 dwellings by the end of 2024, the majority of which will be in Dong Anh district with 34% of future stock, Ha Dong follows with 19% and Hoai Duc with 16%.
The report also stated that in the first half of the year, there were 128 new dwellings, up 38% quarter on quarter but down two% year on year.
New stock came from two existing Ha Dong projects, An Quy Villa with 54 villas and Solasta Mansion with 51 villas, while An Lac Green Symphony in Hoai Duc supplied 12 new townhouses and Him Lam Thuong Tin in Thuong Tin district launched 11 new shophouses.
Primary stock of 608 dwellings came from 16 projects, decreasing by 9% quarter-on-quarter and 24% year-on-year. Villas remained the main product with a 39% share of the available stock.
