Apartment

APARTMENT
Financial
Performance requirements are
changing, however
Grade A Grade B Grade C Absorption regulatory factors and
borders issues have
40,000 100
now cleared. Given
future supply then
30,000 75
prices will adjust to
ensure a stable and
sales

%
20,000 50
sustainable market.

10,000 25 Do Thu Hang

Senior Director, Advisory Services,
Savills Hanoi
0 0
2018 2019 2020 2021 H1/2022

Source Savills Research and Consultancy

KEY FINDINGS
Limited New Supply
Primary stock of 17,925 units dropped by -12% QoQ and - Healthy Demand
16% YoY. Grade B had 85%, followed by Grade C with an Ha Noi’s population is expected to reach 9.1 million by 2025
11% share. New supply of 1,598 units decreased -43% and 9.8 million by 2030. Gross regional domestic product
quarter-on-quarter (QoQ) but increased 1% year-on-year (GRDP) growth between 2026 and 2030 is set to increase to
(YoY). Developers face challenges of prolonged legal 8.5%, or US$12,500 per capita. The city aims for an
procedures, tightening credit controls and increasing average floor area of 29.5 m2 per person by 2025 and
construction costs. should rise to 32 m2 by 2030. By 2025, 19.7 million m2 of
apartments are expected, with an additional 15.2 million m 2
by 2030.
Transactions Declined but Prices Increased
There were 2,238 sales, decreasing -44% QoQ and -54%
YoY. Grade B had 71% of sales. Newly launched projects Outlook
were 30% absorbed. The average primary asking price of In H2/2022, 14 new launches and the next phases of two
VND 45 million/m2 net sellable area (NSA) increased 6% projects will add 11,726 units. Currently, 13 projects with
QoQ and 20% YoY. 7,484 units are fitting out, under construction or at the
foundation stage.
Price Gap
Since 2018, average primary prices increased by 10% pa,
while secondary prices increased by 3% pa. As of
H1/2022, average primary prices were 44% higher than
secondary prices, increasing from 14% in 2018. Limited
new supply coupled with increasing primary prices may
cause the secondary market to heat up.

Q2/2022 - Media Release savills.com.vn

 Villa/ Townhouse

VILLA/ TOWNHOUSE
Performance
Villa Townhouse Shophouse Absorption Current pricing
5,000 100
for the limited stock is
full, hence the soft
absorption.
4,000 80 Transactions mainly
come from secondary
investors. As more
3,000 60
reasonably priced stock
Sales

% comes to the market

2,000 40 then liquidity and
health will improve.
Matthew Powell
1,000 20
Director, Savills Ha Noi

0 0
2018 2019 2020 2021 H1/2022

Source Savills Research and Consultancy

KEY FINDINGS
Supply Drop
New supply of 146 dwellings came from a single project in
Ha Dong and decreased -82% QoQ and -84% YoY.
Primary stock of 993 dwellings decreased -34% QoQ and -
49% YoY, the lowest quarterly primary stock in five years.
Slow Performance
Performance fell by -55% QoQ and -72% YoY with just
302 sales. Gia Lam had the most sales with a 69% share;
Ha Dong followed with 15%. Townhouses and shophouses
had 67% of sales. Quarterly absorption of 30% decreased
by -14 ppts QoQ and -25 ppts YoY. New launches were
14% absorbed.
Strong Capital Gains
Secondary prices increased in H1/2022 compared to 2021;
villa prices increased by 37%, townhouses by 20%, and
22% for shophouses. Compared to 2018, average villa
prices have doubled, and townhouse prices have grown by
67%. Investors will continue to favour landed properties
thanks to the capital growth potential.
Shifting Demand
Supply from Vinhomes The Empire in Hung Yen satisfied
Ha Noi’s unmet demand. The project had 6,000 sales,
equalling Ha Noi’s total sales from 2020 and six times more
than Ha Noi’s H1/2022 sales.
Prudent Outlook
Until the end of the year, 2,131 dwellings from thirteen
projects are expected to enter. Batdongsan.com.vn shows
that buyers are losing interest in the available landed
properties, with searches in villas/townhouses dropping by
-11% YoY and shophouses dropping by -14% YoY. Ha Noi
has upgraded its infrastructure with many projects under
construction or in planning, including Ring Roads 2 & 4,
Metro lines 2 & 3, Vinh Tuy Bridge Phase 2. Planning for
the Red River Urban Area was approved in April.

Q2/2022 - Media Release savills.com.vn