Savills Vietnam's real estate market report for the first quarter of 2025 shows that the absorption rate of the entire market of townhouses and villas in Hanoi recorded 41%, an increase of 13 percentage points over the same period in 2024. Accordingly, the annual increase shows that buyer sentiment is gradually improving.
In particular, the market structure continues to record a shift to the suburbs, in which Dong Anh district accounts for 52% of the total primary transaction volume, followed by Dan Phuong district with 43%, other areas such as Thuong Tin district or Ha Dong district (Hanoi) also contribute about 5%.
However, in terms of price level, Savills Vietnam's report shows that low-rise housing products have decreased quarterly. Villa prices decreased by 14%, averaging VND282 million/m2. Townhouse prices decreased by 14%, reaching VND239 million/m2 of land. Commercial townhouse prices decreased by 12%, reaching VND 278 million/m2 of land.
Ms. Do Thu Hang - Senior Director, Research and Consulting Department of Savills Hanoi - commented that the primary prices of villas and townhouses in the Hanoi market have decreased quarterly because the supply is mainly newly launched projects in the suburbs, with softer prices compared to previous projects.
Meanwhile, in the secondary market, there is a different trend when prices quarterly recorded an increase such as villa prices increased by 10%, reaching 195 million VND/m2; Townhouse prices increased by 15%, reaching 227 million VND/m2 and commercial townhouse prices increased by 9% to 266 million VND/m2.
According to Ms. Do Thu Hang, in the past 5 years, the value of low-rise real estate has increased significantly. Villa prices increase by an average of 29%/year, townhouses increase by 22%/year, commercial townhouses increase by 11 - 16%/year.
Ms. Hang assessed that the developments in the first quarter of 2025 show the selective recovery of the villa and townhouse market - partly thanks to projects with convenient current or future access locations and investors with development experience.
Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club - commented that the price of the townhouse and villa segment may be adjusted in the coming time but will only be slightly reduced. Because most of the investors in this segment are those with solid financial capacity and the goal of holding and investing in the long term.
Real estate experts believe that the market is recovering and gradually having transactions again because the cash flow is moving towards real estate segments. This is also a reason to create confidence for investors to pour money into high-end segments such as villas and townhouses and make this market gradually warm up in the coming time.
