Villa prices in Hanoi are average more than VND 94 million/m2

In Hanoi, the average villa price in the secondary market is about USD 4,075/m2 (more than VND 94 million) including VAT and construction costs. According to CBRE statistics, the new supply of the land-attached housing market in Hanoi in the first 6 months of 2019 was nearly 1.5 times higher than the total supply of the whole of 2018. The Eastern region currently accounts for about 80% of total new launches in the first six months.

In addition, some projects in the west of Hanoi witnessed positive changes when investors announced the completion of unfinished works to be able to fully deliver products with high quality.

In parallel with achieving a positive growth of 3.9% compared to the previous quarter, the selling price also returned to USD 4,000/m2 for the first time in 2 years. This is mainly due to the increase in villa prices in new locations such as Gia Lam, Ha Dong and Long Bien - areas that benefit from the growing infrastructure and the involvement of developers from reputation.

Villas and townhouses were positively received by the market with approximately 2,980 units sold, 14% higher than the total units sold in 2018.

In the first half of 2019, the market of villas and townhouses in Hanoi has 3,241 new units for sale.

It is forecasted that in the remaining 6 months of 2019, the housing market on land will receive more new supply. The products that come to market mostly come from the next phase of the project that were launched beforehand.

Hanoi condominium market in the first 6 months of 2019 has 17,700 new launches. The mid-end and affordable segments dominate the market at 98%. The high-end segment only had two new projects launched in the West Lake area. The selling price of apartments in the primary market was 1,337 USD/m2, increased 4% year on year. High-end apartments have an average price of 2,345 USD/m2 the highest price in this segment in the past 5 years.

Estimated salary of apartment for sale in the whole year in Hanoi is about 33,000 units. The mid-end segment still leads the market, accounting for about 70-80% of the total new supply and launch, while the apartment market in Hanoi still targets buyers for accommodation.

However, as inner-city districts become more crowded, housing supply is expected to move away from the central business district 10km away.  Urban projects will focus on the main supply to the market with synchronized utilities and diverse products.

Theo Hoai Lam