In the first quarter of 2025, the villa and townhouse segment recorded positive signals, supported by development infrastructure, promoting expansion to the suburbs and neighboring provinces.
Do Thu Hang - Senior Director of Savills Hanoi Research and Consulting Department - said that in Hanoi, the new supply for sale reached 2,319 units. Primary supply reached 4,004 units from 17 projects, down 20% quarter-on-quarter but up six times year-on-year. Townhouses account for 64% of primary supply, followed by commercial townhouses with 31% and villas with 5%.
The number of transactions reached 1,629 units, down 49% quarter-on-quarter but increasing sharply year-on-year. The quarterly absorption rate decreased by 26 percentage points quarter-on-quarter, reaching 41% but increasing by 13 percentage points year-on-year.
Vingroup's projects in Dong Anh and Dan Phuong have a large demand. Dong Anh leads with 52% of primary transactions equivalent to 848 apartments, followed by Dan Phuong with 43%. The remaining 5% came from other suburban areas such as Thuong Tin and Ha Dong.
In the Hanoi market, in the past 5 years, the value of low-rise real estate has increased significantly. Villa prices increase by an average of 29% per year, townhouses increase by 22% per year. However, the increase in commercial townhouses is less, only ranging from 11 - 16% per year.
In particular, the average villa price reached VND282 million/m2, down 14% quarter-on-quarter but double year-on-year. Townhouse prices reached VND239 million/m2 of land, down 14% quarter-on-quarter but up 24% year-on-year. Commercial townhouse prices decreased by 12% quarter-on-quarter and were stable year-on-year, reaching VND278 million/m2 of land.
Secondary prices of villas also increased by 10% quarter-on-quarter to VND195 million/m2 of land. Townhouse prices increased by 15% quarter-on-quarter to VND227 million/m2 of land and commercial townhouses increased by 9% quarter-on-quarter to VND266 million/m2 of land.
In Ho Chi Minh City, in the first quarter of 2025, there were no new projects, the market recorded 89 new apartments from the next phase of three existing projects, contributing 13% to the primary supply. More than 90% of new supply comes from The Meadow Binh Chanh project.
Primary supply increased 14% quarter-on-quarter to 698 units, with commercial townhouses being a key product, accounting for 53%. Townhouses have the lowest rate of only 21%, and villas account for 26%.
The operating situation was quite slow when recording 69 transactions with an absorption rate of only 10%, unchanged quarterly and down 5 percentage points yearly. The new supply has an absorption rate of 28%. Most of them are townhouse transactions, accounting for 59%, while commercial townhouses and villas account for only 29% and 12%, respectively.
Supply in Ho Chi Minh City will still be limited and focused on the high-priced segment. However, the product is expected to gradually expand to areas outside the city center.
The strong development of infrastructure in the southern provinces is accelerating the expansion to suburban areas and provinces neighboring Ho Chi Minh City. Infrastructure will become a driving force to diversify supply for areas surrounding Ho Chi Minh City with the formation of new residential areas and increased development quality.
Matthew Powell - Director of Savills Hanoi - commented: "High-quality housing projects with large scale are expected to have a positive impact on market activities and boost demand to areas outside the inner city".
