Colliers International Vietnam HN Market Insights Q22015 - Villa & Townhouse (ENG)

1. SUPPLY
As of Q2 2015, no new significant villa and townhouse projects entered the
market. The total stock is approximately 20,600 units from 109 projects,
located in Tay Ho, Tu Liem, Ha Dong and Hoang Mai Districts. Since 2009,
the city’s low-rise residential area has expanded to the Western and the
Southern city limits as a result of significant infrastructure expansion in
accordance with the city master planning by 2020.
PERFORMANCE
Cau Giay District had the highest average price for dwellings, at
approximately VND165 million psm, followed by Tay Ho District, at VND110
million psm. Me Linh District had the lowest average price as of VND11.2
million psm.
DEMAND
Projects that are well-planned with good facilities, landscaping and living
environment have remained consistent historically in volatile market
conditions. The most popular villa size ranges from 200sqm to 300sqm;
and most popular townhouse size ranges from 100sqm to 180sqm.
Although the buy-to-let method for rental appreciation remains attractive
among property speculators and investors since there is an increasing
number of expatriates in Hanoi, real living purposes have also increased
due to the diversification of products options from reputed developers and
flexible financial incentives.
OUTLOOK
Most of the future villa and townhouse projects will be developed as part
of mixed use complex developments. In 2015, there will be an approximate
of 1,500 units coming online from 5 projects. Townhouse format will
continue to dominate the future supply due to historic proliferation, smaller
sizes and lower prices, which equates to circa 90% of market share. New
built projects are projected to further enhanced by supported facilities and
landscape as new urban compound development.
VILLA & TOWNHOUSE SECTOR
Q2 2015 | MARKET INSIGHTS
HANOI
ECONOMY OVERVIEW
Vietnam has experienced a positive sign of the economic recovery in
1H 2015 when GDP grew 6.28% y-o-y, which is the highest level in the
last 10 years. The consumer confidence index also witnessed significant
improvement when reaching 143.1 points, up 10 ppts y-o-y compared to
the average target of last year.
Total disbursement rate in the foreign funded projects grew by 9.6%
y-o-y to US$6.3 billion. In which, real estate sector continued to attract
lucrative foreign direct investments with 13% of total new FDI, placed at
second after manufacturing.
In parallel with the new legal amendment of the Vietnam Housing Law
came into effect in July 1st 2015 allowing foreigners to legally own, sell and
transfer their properties will boost confidence in property investments.
Q2 2015 Q3 2015F
Supply
Primary Price
Absorption rate
Construction
Table 1: Market Snapshot
Figure 1: Total supply by district
DAVID JACKSON
General Director
david.jackson@colliers.com
PLEASE CONTACT US FOR ANY INFORMATION
TRAN NGUYEN
Business Development Manager
tran.nguyen@colliers.com
www.colliers.com/vietnam
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©2015 Colliers International Research
Project District Developer Type Completion
FLC Garden City Tu Liem FLC
Villa/town-
house
2016
Trang An Complex Cau Giay GP INVEST
Villa/town-
house
2017
Goldsilk Complex Ha Dong Hanovid Townhouse 2017
Evelyne Garden Ha Dong VIDC
Villa/town-
house
2017
The Manor Central
Park
Thanh Tri Bitexco
Villa/town-
house
2018
Table 2: Significant future supply under construction
13%
10%
31%
10%
8%
10%
12%
6%
Hoang Mai
Tay Ho
Ha Dong
Tu Liem
Cau Giay
Long Bien
Hoai Duc
Others
Source: Colliers International Research