Savills' Real Estate Market Report for the first quarter of 2025 shows that the total transaction volume of villas and townhouses in the first three months of 2025 reached 1,629 units, down 49% quarter-on-quarter but increasing sharply year-on-year.
The market structure continues to record a shift to the suburbs, in which Dong Anh accounts for 52% of the total primary transaction volume, followed by Dan Phuong with 43%; other areas such as Thuong Tin or Ha Dong contribute about 5%.
The market absorption rate in the quarter was recorded at 41%, down 26 percentage points quarter-on-quarter but up 13 percentage points over the same period in 2024. The annual increase shows that buyer sentiment is gradually improving.
In terms of price level, Savills' report shows that low-rise housing products have recorded quarterly declines but increased yearly. Accordingly, villa prices decreased by 14% quarterly but doubled yearly, averaging VND282 million/m2. Townhouse prices decreased by 14% quarter-on-quarter, increasing by 24% year-on-year, reaching VND239 million/m2 of land. Commercial townhouse prices decreased by 12% quarter-on-quarter and were stable year-on-year, reaching VND278 million/m2 of land.
Ms. Do Thu Hang - Senior Director, Research and Consulting Department, Savills Hanoi - commented: "The primary price of villas and townhouses in the Hanoi market has been adjusted quarterly because the supply this quarter is mainly newly launched projects in the suburbs with lower prices than previous projects".
Ms. Hang assessed that market activities in the first quarter of 2025 show a selective recovery of the villa and townhouse market - partly thanks to projects with convenient current or future access locations and investors with development experience.
The total primary supply of the whole market reached 4,004 units, although decreasing compared to the fourth quarter/2024 but an increase of 6 times by year. The new supply of sale reached 2,319 units, of which 97% came from Vinhomes Wonder City, the project with a lower starting price than Vinhomes Global Gate was opened earlier, thereby significantly affecting the trend of the average primary price of the whole segment.
It is worth noting that the price structure continues to move, the number of products costing over 30 billion dong increased, accounting for 36% in the first quarter of 2025 from 17% in 2024, group 20-30 billion dong accounted for the majority with 62%. Meanwhile, the group of less than 20 billion has become scarce. This sets up a challenge for many investors about the expectation of profit, especially the price of products on the market is currently high. In this context, many investors are turning to satellite provinces with the price of 10 - 20 billion, the price range has now become rare in Hanoi.
In the secondary market, the steady price increase also clearly reflects the expectation of keeping property instead of short -term surfing. Ms. Hang warns that the current period requires investors to carefully consider the real value of the product, especially the price element per square meter compared to the quality of the building and location.
