Hanoi home, shophouse prices rise on lack of supply

By Ngoc Diem   October 8, 2023 | 06:11 pm PT
Hanoi home, shophouse prices rise on lack of supply
Shophouses and villas at an urban project in the west of Hanoi. Photo by VnExpress/ Ngoc Thanh
Property consultancies said the prices of villas, shophouses and townhouses in the Hanoi primary market increased in the third quarter mainly due to sparse supply.

According to Savills Vietnam, villa prices rose by 3% year-on-year to VND103 million (US$4,360) per square meter on average, and shophouse prices by 6%.

JLL data showed townhouse prices were up nearly 7%. Some projects near the Belt Road No. 3 fetched high opening prices of up to VND200 million per square meter.

According to Savills, there no new supply entered the market in the third quarter.

JLL experts said developers have become very cautious now, prioritizing legal procedures and construction rather than aggressive pre-sale activities unlike in the past, leading to the townhouse market remaining in a state of "hibernation."

High prices are the biggest turn-off for potential home buyers.

Savills data showed that sales of villas, shophouses and townhouses – all in the secondary market -- decreased by 66% year-on-year to 101 units.

According to experts, supply will show signs of improvement from the end of this year. In the fourth quarter more than 500 new units at five projects are expected to enter the market.

By 2025 there will be 9,000 new villas, shophouses and townhouses at 34 projects, concentrated in the districts of Dong Anh and Ha Dong, according to Savills.

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