Friday , February 23 2024

Hà Nội market has lowest villa, townhouse sales in years

 

Sales in the fourth quarter of 2023 decreased by 37 per cent on quarter and 67 per cent on year to 64 dwellings. VNA/VNS —Photo Minh Nghĩa

HÀ NỘI — Hà Nội real estate market in 2023 saw the lowest sales in the villa and townhouse segment in the past 10 years, but selling prices of the villa and townhouse segment in Hà Nội continued to increase strongly.

Sales in the fourth quarter of 2023 decreased by 37 per cent on quarter and 67 per cent on year to 64 dwellings. Quarterly absorption of 9 per cent decreased by 5 percentage points (ppts) on quarter but softened by 12 ppts on year, according to the Savill Hanoi’s reports on Hà Nội real estate market in the second half of 2023.

In 2023, there were only 359 sales, the lowest since 2014. Sales dropped by 76 per cent year on year, and absorption of 36 per cent decreased by 31 ppts year on year.

“Lack of new supply, high priced inventory and low buyer confidence constrained landed property performance,” said Matthew Powell, Director of Savills Hà Nội.

Although most developers did not change their prices, high-priced inventory caused primary prices to rise, according to Savills Hà Nội.

Primary villa prices increased by 55 per cent on quarter to VNĐ160 million per sq.m of land area (LA), mostly due to low-priced stock in Mê Linh selling in the third quarter of 2023. Townhouse prices improved by 3 per cent on quarter to VNĐ194 million per sq.m LA, shophouse prices also increased by 3 per cent on quarter to VNĐ328 million per sq.m LA.

According to Đỗ Thu Hằng, senior director, advisory services, Savills Hanoi, regarding high selling prices, besides investors setting too high expectations in terms of price, there were also projects that have had high land use fees and high investment costs, leading to higher primary selling prices than that of surroundings.

High primary prices will shift demand to the secondary market with greater choice, affordability and legal clarity. Secondary villa prices per square metre of land area were 7 per cent less than average primary prices, secondary townhouses cost 24 per cent less than primary. products, and secondary shophouses cost 40 per cent less than primary products.

Regarding new supply, there were 87 new dwellings: 58 dwellings from Solasta Mansion, a new project in Hà Đông, and 29 dwellings from An Lạc Green Symphony, an existing project in Hoài Đức. In 2023, there were 272 new dwellings, decreasing by 82 per cent on year and the lowest in ten years.

Primary stock of 710 dwellings came from 16 projects, decreasing by 2 per cent on quarter and 23 per cent on year. Townhouses were the main product with a 44 per cent share of stock.

Infrastructure development such as Ring Roads 3.5 and 4 will expand the Hà Nội housing market. From 2024 to 2026, rural districts will have a 75 per cent share of the new supply.

“Infrastructure development will continue to push residential demand to surrounding provinces and areas with more affordable prices and large land banks,” said Powell.

In 2024, 2,932 new dwellings from 13 projects are expected, 82 per cent of which will come from new projects.

By 2026, 14,000 new dwellings are expected from 37 projects. Đông Anh is the leading provider with a 30 per cent share of new supply. New mega projects will deliver supply, including Vinhomes Cổ Loa and Vinhomes Wonder Park. — VNS

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