Hanoi villas 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. 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, said the report released on July 11.

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 with less 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 percentage points quarter on quarter and 3 percentage points 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.