On an online real estate trading page, a detached villa in the Vinhomes Green Bay project, Me Tri, Nam Tu Liem, Hanoi, is advertised by a broker for sale at a price of 50 trillion VND per unit, equivalent to 1.01 billion VND per square meter. The broker promotes this villa as a rare find, featuring a European style, and an excellent investment opportunity at this price.
According to the listing, this villa is located on a corner lot with three open sides and boasts a panoramic view of a lake spanning over 8 hectares. The property has a land area of 500 square meters, with two 50-meter-wide frontages, and a total construction area of 1,200 square meters, including a 300-square-meter first floor. The villa comprises four stories, eight bedrooms, and is equipped with an elevator.
Just a few days earlier, in the same area, a broker listed a detached corner villa named Hoang Lan in the Vinhomes Green Bay project, measuring 307 square meters, for 435 billion VND, equivalent to 1.42 billion VND per square meter. Another fully furnished Hoang Lan detached villa with an area of 306 square meters was offered for sale at 200 billion VND, or 653 million VND per square meter.
In reality, the transfer price of villas in Hanoi’s inner city has increased significantly over time. At Vinhomes Green Bay, the average selling price in August 2024 was 488 million VND per square meter, 21.3% lower than the peak price in February 2024 (620 million VND per square meter). However, over the past five years, the price of villas in this area has tripled on average.
A practical survey reveals that in the Hapulico Vu Trong Phung area, the asking price for villas fluctuates between 320 and 380 million VND per square meter. Specifically, the highest price is for a 141-square-meter garden villa with four stories and a 9-meter frontage, listed at 54 billion VND, or nearly 383 million VND per square meter. Asking prices in this area have increased by almost 20% in the past year.
Price fluctuation history over the past year in Hapulico.
In the O Cho Dua area of Dong Da District, a broker is offering a townhouse at 83 Hao Nam Street for 27.5 billion VND, equivalent to 550 million VND per square meter. This townhouse has an area of 50 square meters and a 7-meter frontage, built over seven stories.
In the My Dinh area, villas in the urban area of The Manor – Hanoi are advertised for sale at a range of 260 to 380 million VND per square meter, with each villa spanning an area between 142 and 200 square meters.
According to historical price data from a real estate website, the average selling price in the second quarter of 2024 for The Manor was 332.8 million VND per square meter, representing a 16.5% increase over the past year. For instance, in the third quarter of 2023, when the market hit rock bottom, the average selling price in The Manor – Hanoi urban area was around 285 million VND per square meter, whereas it now stands at 332.8 million.
Ms. Do Thu Hang, Senior Director of Research and Consulting at Savills Hanoi, shared that the primary supply in the second quarter was just over 600 units, a 9% decrease quarter-on-quarter and a 24% decrease year-on-year. Due to limited supply, the selling prices of townhouses and villas also increased by 2-9%, reaching 188 million VND and 178 million VND per square meter, respectively.
Similar to apartments, new projects at high price thresholds have pushed up the resale price in older neighborhoods. According to Ms. Hang, the secondary selling price of villas is currently 8% lower than the primary price, while townhouses are about 5% lower.
Ms. Hang assessed that the townhouse/villa segment is showing slow recovery signs. In the first half of the year, the number of transactions in this segment decreased by 40% quarter-on-quarter, although it increased by 5% year-on-year, reaching 111 units. The quarterly absorption rate was only 18%. New supply absorption reached 48%, a decrease of 15 percentage points quarter-on-quarter and 3 percentage points year-on-year.
Most primary transactions were recorded in Ha Dong District, accounting for 61%, thanks to upcoming infrastructure projects such as Le Quang Dao Street, expected to be operational in the fourth quarter of 2024. Hoang Mai District and Thuong Tin County followed with 14% and 9%, respectively.
Regarding future supply, Ms. Do Thu Hang shared that in the second half of this year, Hanoi is expected to have nearly 3,000 low-rise units from 13 projects. Dong Anh County accounts for 34% of future supply, followed by Ha Dong District and Hoai Duc County. According to Ms. Hang, the three amended laws on Land, Housing, and Real Estate Business, which are expected to take effect on August 1, along with improved transport infrastructure, will facilitate the development of low-rise housing supply in the long term.
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