Prices of townhouses and villas in Hanoi are 'hot' again

According to the report of the Department of Housing and Real Estate Market Management (Ministry of Construction), at the end of the third quarter, the selling prices of villas and townhouses in Hanoi all tended to increase sharply by 7-10% compared to the second quarter.

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

Transaction volume in this segment also increased strongly, especially in the third quarter, with more than 2,500 units sold, nearly 5 times higher than the previous quarter. The average primary selling price in the quarter reached VND235 million/m2, up 16% quarter-on-quarter and nearly 27% year-on-year.

A survey on some real estate trading sites also shows that the prices of many townhouses and villas are increasing sharply. For example, villas and townhouses in The Phoenix Garden Urban Area (Dan Phuong District) are being advertised for sale at around 70 million VND/m2, nearly double the price at the end of 2023.

Prices of townhouses and villas in Hanoi are increasing sharply. (Illustration photo: Minh Duc).

Or the selling price of villas and townhouses in the Ha Do Charm Villas project (Hoai Duc district) is fluctuating from 120 to more than 140 million VND/m2, an increase of about 30% over the past year.

In Ha Dong district, townhouses in Geleximco urban area along Le Trong Tan street are being offered for sale at around 200 million VND/m2. This price has increased by 90% within 1 year and is double compared to the COVID-19 period.

According to experts, the selling prices of villas and townhouses in Hanoi have increased sharply because of the high prices of apartments. In addition, the price increase is also due to the scarcity of supply, while people's demand is increasing.

Mr. Pham Duc Toan, General Director of EZ Real Estate Company, cited: Since the beginning of the year, new apartment projects in the West have been continuously launched with prices ranging from 60 to 80 million VND, even nearly 100 million VND per square meter, causing investors in surrounding low-rise projects to want to raise prices.

Accordingly, many villas adjacent to the West area also started to increase in price again in the first half of this year, although in the same period last year, many investors had to reduce prices by 15-20% to sell their products due to loan interest pressure.

Another reason for the increase in villa and townhouse prices is the impact of new regulations from related laws. For example, land compensation prices will be based on market prices, which may push up primary prices. Or the relaxation of regulations on land ownership for overseas Vietnamese is also expected to attract a large amount of remittances, boosting demand, creating conditions for the prices of townhouses and villas to be maintained at a high level.

Ms. Pham Thi Mien, Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute, analyzed: The prices of townhouses and villas have been pushed up very high in recent times due to the limited supply of this segment. In addition, new products are currently being developed in the higher-end segment, so prices have also increased.

Ms. Mien assessed that the supply of the short-term segment will continue to be limited due to legal bottlenecks. Therefore, from now until 2025, the selling price of townhouses and villas will hardly decrease but will remain the same or increase slightly.

According to this expert, when the price of townhouses and villas is at a high level, investors need to be extremely cautious. " 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, if using financial leverage, they also need to calculate the ability to pay," Ms. Mien advised.

According to economic expert Nguyen Tri Hieu, many townhouses and villas are currently being priced too "virtually", not in accordance with reality. Therefore, if investing, buyers need to consider carefully because this is a valuable asset, this segment has low liquidity, is picky about customers, and is difficult to sell.

Chau Anh

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