Capital townhouses set to offer real value for money

There are still many potential villas with money burning holes in their pockets

The villa and townhouse segment is set to offer the best returns in Hanoi’s property market.

Colliers International Vietnam residential researcher Khuat Huu Vu Trung said: “At present, there are only a few of successful villa and townhouse transactions in the Hanoi’s property secondary market and their prices are at a standstill.

However, the segment still is the most potential as the demand still far exceed the supply for the products in the future.”

Except for the case of Vigracera Land’s 33 villas belonging to Dang Xa new urban area in Gia Lam district, having sold out a week after launching, current projects were sold out at the high prices before they were offered to the primary market, according to Savills Vietnam’s latest report.

According to Savills, there are almost 8,200 villas and 11,400 townhouses supplied to the market. The average popular secondary asking villa prices are at the highest in Cau Giay district, reaching $7,400 per square metre in the second quarter of 2010, followed by Tay Ho and Tu Liem districts with more than $6,800 per square metre and more than $5,100 per square metre, respectively. Thanh Tri and Gia Lam districts experienced the lowest prices.

However, hundreds of completed villas and townhouses belonging to a series of residential projects across in Hanoi are still empty as most buyers are speculators, not end-users.

Tran Ngoc Tuan Anh, Vigracera Land marketing manager, said: “There are a few of buyers purchasing the units for accommodation. They are high-income earners and a buyer can purchase several units, even tens of units. They use them as long-term investments or gifts for relatives.”

Trung said many speculators would wait three or five years for unit prices to double. For example, Ciputra International City, in Tay Ho district, sold villas at $1,250 per square metre afew years ago, but now they sell for $7,631 to $8,421 per square metre.

“Buyers are thirsting for more residential projects offering villas and townhouses for sale. The supply from 59 new villa, townhouse projects in Hanoi over the medium-term will partially help to ease the thirst,” added Trung.