Sales in the fourth quarter of 2023 decreased by 37% quarter-on-quarter and 67% year-on-year to 64 units. — VNA/VNS
HANOI: Hanoi’s real estate market in 2023 saw the lowest sales in the villa and townhouse segment in the past 10 years, even as prices in the category continued to rise strongly.
Sales in the fourth quarter of 2023 decreased by 37% quarter-on-quarter (q-o-q) and 67% year-on-year (y-o-y) to 64 units.
Quarterly absorption of 9% decreased by five percentage points (ppts) q-o-q but softened by 12 ppts y-o-y, according to the Savill Hanoi’s report on the Hanoi real estate market for the second half of 2023.
In 2023, there were only 359 sales, the lowest number since 2014. Sales dropped by 76% y-o-y, and absorption of 36% decreased by 31 ppts y-o-y.
“Lack of new supply, high priced inventory and low buyer confidence constrained landed property performance,” said Matthew Powell, director of Savills Hanoi.
Although most developers did not change their prices, high-priced inventory caused primary prices to rise, according to Savills Hanoi.
Primary villa prices increased by 55% q-o-q to 160 million dong per square metre of land area (LA), mostly due to low-priced stock in Me Linh selling in the third quarter of 2023. Townhouse prices improved by 3% on quarter to 194 million dong per square metre of LA, shophouse prices also increased by 3% q-o-q to 328 million dong per square metre of LA.
According to Do Thu Hang, senior director of advisory services for Savills Hanoi, the high selling prices were mostly due to investors setting too high expectations in terms of price. There were also projects that had high land-use fees and high-investment costs, leading to higher primary selling prices, he added.
High primary prices will shift demand to the secondary market where there is greater choice, affordability and legal clarity, Hang said. Secondary villa prices per square metre of land area were 7% lower than average primary prices, while secondary townhouses cost 24% less than primary offerings. Secondary shophouses cost 40% less than primary products.
Regarding new supply, Hang said 87 new dwellings were added to the market: 58 from Solasta Mansion, a new project in Ha Dong, and 29 from An Lac Green Symphony, an existing project in Hoai Duc.
In 2023, 272 new dwellings were added to the market, decreasing by 82% y-o-y and the lowest number in 10 years.
Primary stock of 710 dwellings came from 16 projects, decreasing by 2% q-o-q and 23% y-o-yr. Townhouses were the main product with a 44% share of stock. — Viet Nam News/ANN
