Villas and townhouses in West Hanoi are currently a hot segment in the capital's real estate market, continuously setting new price benchmarks reaching up to 300 million VND/m2. What is driving this strong surge in the low-rise real estate market in West Hanoi?
According to the Vietnam Association of Real Estate Brokers (VARS), over the past three years, from 2021 to the present, the price increase rate of real estate in Western Hanoi has been higher than other areas, averaging 7-15%. Furthermore, VARS's 2022 and 2023 real estate market reports also noted that for several consecutive quarters, apartments in Western Hanoi dominated in terms of supply and transactions.
In Q3 2023, the number of newly launched apartments in the West accounted for nearly 62% of the total supply. From Q4 2023 to the end of Q2 2024, West Hanoi continued to be the most vibrant real estate area in Hanoi.
In particular, the low-rise segment along the 3.5 and 4 ring roads is continuously setting new price levels. Surveys show that the prices of villas and townhouses in Hoai Duc, Dan Phuong, and Ha Dong have increased by 30-50% compared to over a year ago. Currently, many low-rise projects have reached the 300 million VND/m2 mark (Source: WTO).
Villas and townhouses in the West are continuously setting new price levels (WTO).
In some promising areas, real estate agents have made a strong comeback, attracting a surge in interested clients and even causing localized price spikes. In fact, price increases in the low-rise segment in the West are stronger than in other areas, ranging from 5-10%. Agents believe that without at least 30 billion VND in hand, it's very difficult to find promising properties in this area.
Experts attribute the extremely vibrant real estate market in the western part of the capital to two main reasons.
Ms. Do Cam Nhung, owner of a real estate brokerage office in Hanoi, believes that the biggest reason is the breakthrough in planning and infrastructure development in this area.
"The remarkable development of infrastructure in the western region has created a strong growth pole for the real estate market in the West in general over the past 10 years and the next 10 years. This is because, according to the plan for 2050, the western region will have two more cities under its direct administration: the Hoa Lac Science & Training City and the Tourism City in the Son Tay - Ba Vi area."
Furthermore, according to the "Major Planning Project to 2030 and Vision 2050", Hanoi will shift from a single-center model to a multi-center model, following the general trend of major cities around the world .
"With this plan, Hanoi aims to develop five urban zones corresponding to the four cities mentioned above and one central urban area. In particular, the western area alone has two new cities, which will be a very strong driving force for the real estate market in this area in the near future," Ms. Nhung informed.
Limited supply is one of the reasons why the villa and townhouse market has become a hot segment (WTO).
According to Ms. Do Thu Hang, Senior Director of Research and Consulting at Savills Hanoi, the main reason driving up the resale prices of townhouses in the western area from now until the end of 2024 is the limited new supply and high primary market prices. Specifically, the primary supply in the second quarter was only over 600 units, a decrease of 9% quarter-on-quarter and 24% year-on-year. Due to the limited supply, the selling prices of townhouses and villas also increased by 2-9%, reaching 188 and 178 million VND per square meter respectively.
"In the context of a real estate market lacking investment products, and low interest rates for a considerable period, investors have sought opportunities in the villa and townhouse market. In this context, the scarcity of supply has caused villa and townhouse prices to heat up. The market is showing signs of being much more vibrant than in previous periods. Many projects launched have achieved very positive liquidity due to immediately attracting existing market demand," Ms. Hang commented.
Hinode Royal Park stands out in the western part of Hanoi with its main product lines being townhouses, shophouses, and villas (Photo: WTO).
Furthermore, the appeal of real estate in this area is even greater because, in a short period of time, the western region has quickly attracted major real estate developers with smart urban projects and iconic real estate developments. For example, the Trade and Construction Corporation (WTO) with its Hinode Royal Park urban area project (Kim Chung - Di Trach urban area) boasts some of the most prominent townhouses, shophouses, and villas in western Hanoi.
Besides its prime location in the western part of Hanoi, the low-rise subdivisions at Hinode Royal Park attract investors because of their still-low selling prices and the well-planned, standardized investment.
According to the developer, the project is designed as an "all-in-one" development, encompassing various types of housing including commercial townhouses, garden houses, detached villas, and semi-detached villas, integrated with a system of high-class amenities. High-end entertainment areas are interspersed with central parks, internal parks, and lush green landscapes, providing residents with peaceful moments of relaxation and rejuvenation after a long, busy day.
Source: Trade and Construction Corporation (WTO)
Source: https://phunuvietnam.vn/bat-dong-san-thap-tang-phia-tay-ha-noi-ngay-cang-tang-nhiet-20241011185624524.htm
Comment (0)