Prices of townhouses and villas in Hanoi are increasing rapidly, experts say something surprising

Prices of townhouses and villas have increased "hotly"

The third quarter report of this year from many market research units shows a picture of townhouses and villas in recent times.

Cushman & Wakefield said that in Hanoi, 2,629 new townhouses (townhouses, villas) were launched for sale, up 934% quarter-on-quarter and 3,067% year-on-year. The average primary price of this segment also increased to 12,012 USD/m2 (about 300.3 million VND/m2), marking an increase of 19% quarter-on-quarter and 120% year-on-year.

According to a report by CBRE Vietnam, the past 9 months have witnessed an explosion in the townhouse segment with a total supply of more than 3,500 units, the highest in the past 5 years.

Transaction volume in this segment also increased sharply, especially in the third quarter, with more than 2,500 units sold, nearly 5 times higher than the previous quarter. The average selling price of townhouses and primary villas in the last quarter increased significantly compared to the previous quarter, reaching VND235 million/m2, up 16% quarter-on-quarter and nearly 27% year-on-year.

According to a survey by Dan Tri reporters, since the beginning of the year, the prices of townhouses and villas in Hanoi have increased significantly, with some even appearing with prices of up to over 1 billion VND/m2. However, these cases are rare and not common on the market.

A townhouse and villa area in the West of Hanoi (Illustration: Duong Tam).

In districts such as Nam Tu Liem, Hoang Mai, Hoai Duc district... the selling price of townhouses and villas is fluctuating from nearly 300 million VND to more than 400 million VND/m2.

For example, a 200m2 villa in a project in Hoang Mai district is being sold for 70 billion VND, equivalent to 350 million VND/m2. Meanwhile, at the beginning of the year, the price of a villa in this project was only about 270-300 million VND/m2.

Expert: Investing in townhouses and villas at present will be ineffective and risky

Speaking to Dan Tri reporter, Ms. Pham Thi Mien, Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute, said that the prices of townhouses and villas have been pushed up very high in recent times. The reason is that there is not much supply in this segment. In addition, new townhouses and villas are currently being developed in a higher-end segment, so the prices are pushed up.

"Primary prices of villas and townhouses are pushed up, leading to high prices in the secondary market. Although prices are high, the absorption rate of low-rise houses is also quite good," said Ms. Mien.

According to her, the supply of townhouses and villas in the short term will continue to be limited due to legal bottlenecks. Accordingly, from now until 2025, the price of this segment will hardly decrease but will remain the same or increase slightly.

Townhouses and villas in Hanoi have increased in price sharply in recent times (Photo: Duong Tam).

From an investment perspective, Ms. Mien said that the prices of villas and townhouses have increased sharply since the middle of last year, so buyers also need to consider the potential for price increases through the location and infrastructure surrounding the house.

"The real estate market is in a transitional phase, so issues are sensitive and there will be lurking risks. Buyers should carefully consider the potential for price increases of the house, and if using financial leverage, they also need to calculate their ability to pay," she said.

According to Mr. Le Dinh Chung, a real estate expert, recently, townhouses and villas in Hanoi have also increased in price at the same rate as apartments. However, houses priced from 700 million to 1 billion VND/m2 are only rare cases, possessing prime locations or having special factors. This price is only the selling price and has not been confirmed for transactions, so it cannot represent the market for townhouses and villas.

According to him, the average price of townhouses and villas in Hanoi is around 300 million VND/m2. However, this segment is currently ineffective and will have risks because the price has increased sharply before. The price increase of this segment will not be much but the investment capital is too large.

Research units also share the same forecast that in the long term, the villa and townhouse segment will continue to fluctuate in price, especially in inner-city districts and central areas. The main reason comes from the scarcity of supply and the increasingly narrowing land fund. However, experts assess that this price increase will take place more slowly and sustainably, avoiding strong fluctuations like in the past.

Source: https://dantri.com.vn/bat-dong-san/gia-lien-ke-biet-thu-ha-noi-tang-nong-chuyen-gia-noi-dieu-bat-ngo-20241023012433942.htm