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, as well as infrastructure developments and large supply from mega projects in the next few years, according to Savills.

 

 

Villas in a project in Hà Nội. New villas in high-end market projects showed prices increasing by 9 percent quarter-on-quarter, according to Savills. —VNA/VNS Photo

 

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 Thursday.

 

In Hanoi, New villas in high-end market projects showed prices increasing by 9 percent quarter-on-quarter to VNĐ178 million (US$7,007) per sq.m.

 

Townhouse prices decreased by 2 per cent quarter-on-quarter to VNĐ188 million per sq.m, with higher priced units already sold and only affordable units remaining.

 

Shophouse prices increased by 3 per cent quarter-on-quarter to VNĐ288 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 per cent lower than primary prices, while townhouses were 5 per cent cheaper.

 

However, "performance was slow", said Mathew Powell, director, Savills Hà Nội.

 

Sales in the second quarter fell by 40 per cent quarter-on-quarter, but rose by 5 per cent year-on-year, reaching a total of 111 dwellings, and quarterly absorption was only 18 per cent. Newly launched properties were 48 per cent absorbed, fell by 15 percentage points quarter on quarter and 3 percentage points year on year.

 

The majority of primary transactions were still in Hà Đông district with 61 per cent, due to infrastructure projects aimed for completion such as Lê Quang Đạo road expected to operate in the last quarter of this year. Hoàng Mai and Hoài Đức districts each followed with 14 per cent and Thường Tín had 9 per cent.

 

"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 Đông Anh district with 34 per cent of future stock, Hà Đông follows with 19 per cent and Hoài Đức with 16 per cent.

 

The report also stated that in the first half of the year, there were 128 new dwellings, up 38 per cent quarter on quarter but down two per cent year on year.

 

New stock came from two existing Hà Đông projects, An Quy Villa with 54 villas and Solasta Mansion with 51 villas, while An Lac Green Symphony in Hoài Đức supplied 12 new townhouses and Him Lam Thường Tín in Thường Tín district launched 11 new shophouses.

 

Primary stock of 608 dwellings came from 16 projects, decreasing by 9 per cent quarter-on-quarter and 24 per cent year-on-year. Villas remained the main product with a 39 per cent share of the available stock. — VNS

 

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