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Hanoi villa/townhouse segment showing promise

Released at: 10:26, 14/01/2016

Hanoi villa/townhouse segment showing promise

Higher transaction volumes evidence of segment gaining in popularity, according to Savills report.

by Quynh Nguyen

After three quiet quarters, the villa/townhouse segment in Hanoi became vibrant during the fourth quarter of 2015, with transaction volumes reaching the highest quarterly figure in two years, Ms. Do Thu Hang, Head of Research and Consultancy at Savills Vietnam, told a conference releasing its Hanoi Real Estate Market Report (Q4).

The report showed that total stock in the villa/townhouse segment was 31,125 dwellings (13,677 primary and 17,448 secondary) from 121 projects, up 2.5 per cent quarter-on-quarter and 3.8 per cent year-on-year. Seven new projects and a new launch of an existing project provided 755 dwellings, 85 per cent of which were townhouses.

The average secondary price of villas was down 1.4 per cent quarter-on-quarter and 2 per cent year-on-year, while the secondary price for townhouses was up slightly, by 0.3 per cent quarter-on-quarter and 2.5 per cent year-on-year.

Thanh Xuan district had the highest average primary price for villas, at $8,280 per sq m, while Cau Giay district saw the highest average primary price for townhouses, at $6,255 per sq m. New projects are located in Tu Liem, Cau Giay, Thanh Xuan, and Ha Dong districts.

Notably, 90 per cent of new supply was townhouses/shop houses. Good sales performance was observed in new projects, with absorption rates reaching 47 per cent.

Shop houses have attracted attention due to their dual-purpose functionality and are generally priced higher than townhouses. Savills predicted that, in 2016, 16 projects will provide approximately 2,740 dwellings.

Ms. Hang also stressed that the villa/townhouse segment has entered a new development stage. “Projects now focus more on location with convenient transport and utilities, while previously they often focused on building on large land plots,” she said.  

“Buyers now purchase a villa not only to live in but as an investment,” she added. “Investors also build projects to ensure the highest profitability possible.”

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