Villas and townhouses increase in price, real estate investors "panning for gold"

Vibrant villa and townhouse segment

The real estate market in the Southern region is currently recording many positive signals in all segments. In which, villas and townhouses show signs of growth as buying and selling prices increase.

According to the report of the Institute of Construction Economics ( Ministry of Construction ) in the second quarter of 2024, the survey of selling prices of villas and townhouses in the project all tended to increase compared to the previous quarter. The hot price increase in the apartment market also had an impact, leading to an increase in prices of individual houses, townhouses in projects and houses in existing residential areas.

The Southern real estate market received many positive results from the villa and townhouse segment.

In some areas of the two major cities of Hanoi and Ho Chi Minh City, price fluctuations increased during the quarter. In Ho Chi Minh City, the average selling price of some projects increased compared to the months of the previous quarter.

Specifically: Precia Riverside (District 2) increased by about 8.6% (to 203.8 million VND/m2), Villa Riviera (District 2) increased by about 6.6% (to 385.0 million VND/m2), River Park (District 9) increased by about 6.2% (to 111.4 million VND/m2)....

The villa and townhouse segment in Ho Chi Minh City also saw new supply from The Foresta project (Thu Duc City) providing 159 villas; Bao Anh Residence Townhouse Project (District 12) with a scale of 31 townhouses...

According to Nguoi Dua Tin , in the Ho Chi Minh City area, the villa, townhouse, and adjacent house segment also has a series of "big guys" that are implementing construction and opening for sale, such as Masterise Group; Van Phuc Group; Khang Dien House Company (projects are mainly concentrated in the East, Ho Chi Minh City)...

These are large projects, developing many segments and phases. The above projects are considered to be the source of supply for the market in recent years.

In addition, in provinces and cities such as Binh Duong , the villa and townhouse segment is also offered for sale such as the Phuc An Ashita Bau Bang townhouse and villa project, Bau Bang district; Sycamore Capitaland project, Thu Dau Mot city...

In Dong Nai province, there are Aqua City project (Novaland); Eco Village Saigon River Nhon Trach, Nhon Trach district... These are large projects providing villas and townhouses near Ho Chi Minh City.

A villa and townhouse project that attracts investors.

Commenting on the current price fluctuations of the villa and townhouse segment, Mr. Nguyen Van Dung (investor) shared with reporters: "Currently, investors are looking for real estate products that are legally secure and have advantages in terms of traffic infrastructure and regional connectivity. Regarding the current prices of villas and townhouses in Ho Chi Minh City or neighboring areas, prices have not decreased for many years, because the market always fluctuates with increasing amplitudes over each period."

"The villa and townhouse segment can currently be assessed as attracting a large number of customers due to the solidity of the project's legal status and the reputation of the investors. In my opinion, the current transaction liquidity is not as massive and hot as in previous years. However, due to the severe shortage of supply in the market, the Land Law and Housing Law officially taking effect have affected buyers' psychology about the possibility of higher land prices and the difficulty of buying real estate, so investors in the villa and townhouse segment are 'hunting', causing the market to fluctuate," said Mr. Dung.

According to Mr. Dung, investors trading in this segment are currently very picky. They mainly have to "pave the sand for gold", looking to buy villa and townhouse projects at the price of 3 - 7 billion VND to create liquidity and profit for the next period. Projects worth tens of billions of VND/villa still have transactions but are very limited, mainly located in Thu Duc City, Ho Chi Minh City with this price.

Completed townhouses and villas attract investors

According to research data from Savills Vietnam (a real estate group in Vietnam), the villa and townhouse segment has not improved new supply in recent times due to scarce land funds.

In addition, this segment also faces many difficulties from legal procedures and cautious psychology from investors and businesses. This causes a decrease in supply.

Talking to Nguoi Dua Tin , Mr. Ha Van Thien, Deputy General Director of Tran Anh Group Corporation (Trananh Group) commented: "Currently, the supply of villas and townhouses in Ho Chi Minh City is quite scarce. The reasons can be listed as slow legal progress, not much land for projects. This makes the market have few products to choose from, which is also the reason why this segment increases in value. In other provinces such as Long An, Binh Duong, Dong Nai, there are more products. However, prices have also increased a lot compared to the previous period."

With the villa and townhouse segment having liquidity, focusing on attracting investors and buyers to learn about the project.

According to Mr. Thien, the current general economic situation still has many "dark" points, which greatly affects the psychology of home buyers as well as project investment enterprises. In addition, the Land Law, Real Estate Business Law, and the new Housing Law, which took effect from August 1, also have a great impact on the market.

"The new law has been applied, many investors and businesses are still waiting for the market to stabilize. In particular, products in the villa and townhouse segment that have completed legal procedures, built infrastructure, etc. are one of the bright spots attracting investors in terms of price, as well as peace of mind and clear transparency," Mr. Thien informed.

Mr. Ha Van Thien, Deputy General Director of Tran Anh Group. (Photo: NVCC).

"Currently, many villas and townhouses are offered on the market. However, from the perspective of a business and an investor, I think that the current villa and townhouse segment is priced in line with the market and is aimed at investors as well as long-term buyers.

For example, projects with stable legal status, ready-made red books, rough handover, and immediate notarization of ownership transfer to customers are the points that customers need to pay attention to and choose. Because the law is increasingly strict, if customers still think that buying a villa or townhouse that will be built in the future and waiting for the investor to do the legal procedures will bring a lot of risks. On the contrary, customers should look for potential areas with good legal status and reputable investors to put money down during this period," Mr. Thien shared.

Commenting on the opportunities of the villa and townhouse segment by the end of 2024, Mr. Nguyen Viet Hung, General Director of Westland Trading Joint Stock Company, said: "In the first 6 months of the year, the market has recorded many positive signals from the high-end and mid-range apartment segments and liquid transactions of the villa and townhouse market.

Many reports show that over the past 3 years in Ho Chi Minh City and neighboring provinces, there has been a shortage of supply. Therefore, the villas and townhouses currently being offered for sale can be said to have almost completed legal procedures and have projects ready to hand over to customers.

A townhouse project in Long An province.

"For the real estate market, it is very difficult for land prices to decrease deeply, the products will mainly increase gradually over the years or be offered by investors with prices calculated close to the market. Currently, the segment of villas priced under 5 billion in Ho Chi Minh City is very rare, or 3 billion for townhouses, there are almost no projects.

With the above prices, customers have to go to areas like Binh Duong, Long An or Dong Nai to buy. A piece of advice for investors and customers is to look for products with full legal documents, preferably with a certificate or ready-to-handover house to ensure legal transparency. In addition, customers can also use the product itself to use financial leverage," said Mr. Hung.

Villas and townhouses are increasingly scarce

According to DKRA Group (real estate services group), the supply of townhouses and villas in the last months of the year will fluctuate between 950 - 1,050 units, mainly distributed in Ho Chi Minh City and Binh Duong, Long An... To stimulate the market, investors also flexibly adjust payment methods, sales policies,... in accordance with the actual situation.

It is expected that the townhouse and villa market will have 883 low-rise houses launched on the market, mainly from the next phases of existing projects. Products priced above VND20 billion will account for 80% of future supply.

By 2026, future supply is expected to be mainly concentrated in Thu Duc City, Nha Be, Binh Chanh (HCMC); Nhon Trach District, Bien Hoa City (Dong Nai Province); Phu Giao District, Bau Bang District, Tan Uyen City (Binh Duong Province); Duc Hoa District, Tan An City (Long An Province).

Source: https://www.nguoiduatin.vn/biet-thu-nha-lien-ke-tang-gia-nha-dau-tu-bds-dai-cat-tim-vang-204240827152732073.htm