Hanoi's villa and townhouse segment attractive in 2022

Hanoi's real estate market, especially the villa and townhouse segment, will prosper in 2022 thanks to economic stimulus economic programmes.
Hanoi's villa and townhouse segment attractive in 2022 ảnh 1A view of Vinhomes Riverside Villa area in Long Bien district, Hanoi. ( Photo: alphahousing.vn)
Hanoi (VNS/VNA) - Hanoi's real estate market, especially the villaand townhouse segment, will prosper in 2022 thanks to economic stimuluseconomic programmes.

“Vietnam is entering a new normal, adapting to the pandemic and promotingeconomic growth. We are facing opportunities to recover and develop, includingin the real estate market. This leads to the need for supply to meet the needsof the market,” Do Thu Hang, Senior Director, Advisory Services, Savills Hanoi,said at a conference on the property outlook in 2022 held in Hanoi last week.

To overcome the difficulties and challenges of the past two years due to thepandemic, property businesses are forced to innovate in terms of perspectivesand approaches to achieve more sustainable development, Hang said.

Urban real estate investors are paying more attention to health issues.Therefore, the real estate market tends to develop according to environmentalfriendliness, she said.

“Primary stock has been limited for a long time. However, there will be newsupply in 2022, mostly in the large urban areas outside Hanoi. Where theinfrastructure improves, then supply, sales, and prices will also increase,”said Matthew Powell, Director, Savills Hanoi.

In 2022, more than 3,000 dwellings from 13 projects will enter the market.Forty-one percent will be in Hoai Duc, followed by Dan Phuong with 26 percent.Western districts including Ha Dong, Hoai Duc and Dan Phuong will have thelargest supply in 2022 with over 2,200 dwellings, according to a Savills Vietnamreport on Hanoi's property market released at a press conference on February 17in Hanoi.

Eastern Hanoi will also have strong growth with new supply from Ecopark and anew major project, Vinhomes Dream city in Van Giang district, Hung Yen province.

Hanoi recently collaborated with Hung Yen, Bac Giang, Bac Ninh and Vinh Phuc provincesfor the approval of the investment plan for Ring Road 4. Villa and townhouseprojects in Hanoi and other provinces that are located near these Ring Roadswould greatly benefit.

In the fourth quarter of 2021, villa and townhouse performance improved with411 sales, increasing 96 percent quarter on quarter but decreasing 19 percent onyear. Tay Ho had the most sales with a 40 percent share, followed by Dong Anhwith 21 percent. Townhouses and shophouses had 57 percent share of sales;villas has a 43 percent share, the highest since the first quarter of 2020.Quarterly absorption of 37 percent increased 17 percentage points quarter onquarter and 4 percentage points on year. New launches were 83 percent absorbed.

Performance improved, especially new launch absorption thanks to pre-salesactivities.

Most projects started early with diverse capital raising methods includingcapital contributions, investment cooperation, or business cooperationcontracts.

Neil MacGregor, Managing Director of Savills Vietnam, said: “For residentialproperty, townships will be key in 2022. There have been several key townshipsdeveloped over the last couple of years in Dong Nai, Long An and Binh Duong.This will continue to be a trend as residential stock in HCM City is limited.Investors and developers will invest in these townships, especially as infrastructurelinking these areas to the city improves.”

For the Hanoi apartment market, “in 2021, launches and sales were at afive-year low due to prolonged lockdowns, but towards the end of the year therewere signs of recovery with increased activity. Local developers and brandedoperators are collaborating on upscale projects; however, there is a supplyimbalance and more affordable stock is needed,” Hang said.

Meanwhile, “the Industrial and Logistics sector will continue to boom. Thissector has been hot for the last couple of years, and it will continue to gainmomentum as manufacturers start to build their facilities in Vietnam,” saidMacGregor.

There are several new and growing sectors to keep an eye on too. For example,there will be growth in warehouses distribution, e-commerce services, datacentres and cold storage.

“The Vietnamese market may not necessarily have new products, but there will beproducts that the market needs,” said MacGregor.

“Data centres will be a key growth area as the booming internet economy needsspace to store its data. So, there will be huge interest in developing datacentres. Although this is not an easy sector for investors to move into, weexpect there will be development.”

“There will be a demand for cold storage serving e-commerce, retail, andimport/export demand. Hospitality’s return will also create demand for coldstorage. Lastly, one trend that we will see is digital property investment,which appeared pre-pandemic and was fast-tracked over the last two years.People started to buy shares in real estate products online, and we expect thistrend to continue to grow in 2022.”/.
VNA

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