According to CBRE’s latest report, the market for villas and terraced houses in Hanoi faced a scarcity of supply in the first half of 2024, with a limited number of new units available. Specifically, in the second quarter, nearly 270 units from three existing projects were released for sale, bringing the total number of new units released in the first half of 2024 to nearly 300. Compared to the same period last year, new supply in Hanoi decreased by nearly 80%.
In terms of liquidity, the Hanoi market has not seen a significant recovery, with only about 370 units sold, a 26% increase quarter-on-quarter. Limited new supply, coupled with some existing projects being temporarily halted due to incomplete legal procedures, kept the number of sold units this quarter at a low level. In terms of price levels, primary and secondary land-attached real estate prices in Hanoi continued to increase quarter-on-quarter.
Observations show that in the context of the real estate market facing capital challenges, causing most projects to be delayed, the only inner-city project, KITA Capital, located in the Nam Thang Long – Ciputra Urban Area, was introduced to the market with completed legal procedures and land titles ready for handover to customers.
It is understood that the villas in the BT5 subdivision of KITA Capital range from 140 to 318 square meters, including detached and terraced villas. Each villa comprises a basement, three floors above ground, and a tum. VP Bank has committed to financing customers purchasing these villas with preferential interest rates starting at 6.5%, a 12-month grace period for principal payment, and a repayment term of up to 25 years.
In a real estate market facing capital challenges, resulting in delays for most projects, the low-rise product supply is quite scarce. The event of KITA Group handing over the ownership certificates for villas at the KITA Capital project is considered a bright spot in the market. This move helps instill strong confidence in customers and investors during a period of market fluctuations and financial risks associated with real estate project transactions.
Apart from KITA Capital, it is expected that the Hanoi market will not see any new projects until the third quarter, and even then, supply will remain limited to a few projects. Specifically, there are projects in Duong Noi (Ha Dong) and Hoai Duc from two developers, An Lac Company and Nam Cuong Group. Additionally, another project, Vinhomes Dong Anh, is also planning to launch in the early third quarter.
According to Ms. Nguyen Hoai An, Director of CBRE Hanoi, from now until the end of the year, the segment of villas and terraced houses in Hanoi will continue to experience price increases due to scarce supply and rising demand. However, the supply will mainly be in the outlying districts, as the inner city has exhausted its land fund for new projects.
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