HANOI: VILLAS, SHOPHOUSE INCREASES UNLOCKED COVID-19 TRANSLATION, INVESTOR ATTRACTION

 

While condominiums, resort real estate were quiet, the villa, adjacent and shophouse segments in Hanoi still silently increased prices due to scarcity of supply. Notably, the average primary price of the shophouse is about 7,306 USD / m2 (equivalent to nearly 170 million VND / m2), an increase of 18% QoQ compared to the beginning of the year.

 

Savills' recent market report said that although the number of transactions decreased, villas, adjacent, shophouse were still the bright spots in the market, prices still increased despite epidemics in both primary and secondary markets.

Accordingly, the average primary price of the villa is 4,764 USD / m2 (equivalent to more than 110 million VND / m2), up to 19% QoQ. The adjacent average price reached 4,458 USD / m2 (equivalent to more than 100 million VND / m2), increased 9% QoQ and the shophouse about 7,306 USD / m2 (equivalent to nearly 170 million VND / m2), up 18% QoQ.

Meanwhile, the average secondary price of the whole market increased slightly. Specifically, according to Savills, up 1.1% QoQ for villas, 0.5% QoQ for townhouses and 0.1% QoQ for shophouse.

The sharp decline in supply by nearly half compared to 2019 was the reason for the sharp increase in the prices of villas and adjacent houses (source: Savills).

Due to the scarcity of supply, nowadays, even the abandoned villas, adjacent, shophouse in remote areas are also being hunted by investors. Survey shows that villas, adjacent, shophouse in South An Khanh, Splendora, Geleximco areas have silently increased prices by about 30% in less than 1 year.

Explaining the reason for the sharp increase in the prices of villas, adjacent, shophouse in recent times, experts say the scarcity of land fund has caused the number of villas, adjacent, shophouse launched in the past. increasingly rare. Lack of stock has pushed buyers toward remote projects with incomplete social infrastructure.

Savills data shows that the number of projects launched in the first 9 months of 2020 is only 1-2 projects far from the CBD. From now to the end of the year, the market will receive a rare 6-storey shophouse project at Him Lam Van Phuc (Ha Dong). After Him Lam Van Phuc, to wait until early 2021, the market will see some new supply but mainly far from the central area, in the eastern and western districts of Hanoi such as Vinhomes Wonder Park in Dan Phuong, BRG - Sumitomo Smart City in Dong Anh, Xuan Mai Smart City in Chuong My, or two urban areas of Vinhomes in Hoa Lac.

According to investors, while the apartment continuously dropped in price after only 2-3 years of being put into use, the longer the villa, adjoining, and shophouse price increases. The sustainability and immutability of this segment is the main reason that drags investors back to the market after a period of "engrossed in waves" following the land of small and condotel provinces and tasting bitter fruit.

"The successful investment channels have begun to reveal the weaknesses in the Covid-19 translation. Slowing market means that unsustainable segments in the market stand still, even break waves like condotels or land plots. Investors tend to look for safe products that are both investment and valuable for use, ”said an experienced investor.

According to cafef.vn

 

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