Hanoi suburban villa prices hit $10,800/m² amid supply crunch
An estimated 2,800 low-rise homes from 15 projects are set to launch in Hanoi this year.
THE HANOI TIMES — Prices of newly launched suburban villas in Hanoi reached a record high, averaging VND280 million (US$10,800) per square meter in the first quarter (Q1) of 2025, according to Savills Vietnam.
The surge stems from a 50% drop in new supply compared to the previous quarter.
Rendered image of Vinhomes Wonder City Dan Phuong in Hanoi's outlying district of Dan Phuong, Hanoi.
Townhouse prices rose to VND239 million ($9,242) per square meter (sq.m), up 24%. Meanwhile, the primary selling price of shophouses remained steady at VND278 million ($10,750).
The sharp drop in supply also led to a decline in transactions, with only 1,600 units successfully sold in Q1, down 49% quarter-on-quarter.
Savills Hanoi said low-rise real estate prices have grown strongly over the past five years. Prices of villas and townhouses have risen by 29% and 22% per year, respectively. Shophouses have seen slower but steady growth of 11%-16% per year.
The Vietnam Association of Realtors (VARS) has forecast that villa and townhouse prices will remain elevated through 2025 due to land scarcity and rising development costs.
High prices in secondary market
Higher primary prices have pushed up the rates in the secondary market.
Savills Q1 data showed that prices of older villas rose 10% quarter-on-quarter to VND195 million ($7,541) per sq.m of land. Townhouse prices climbed 15% from Q4 2024 to VND227 million ($8,778), while resale shophouses averaged VND266 million ($10,286), up 9%.
David Jackson, CEO of Avison Young Vietnam, said the supply of the low-rise housing segment in Q1 2025 rebounded from the slowdown in 2022 and 2023, thanks to urban development and the return of speculative investors.
Savills forecasts that 2,800 low-rise units from 15 projects will be launched in Hanoi this year. A major development in Dan Phuong District, covering 133 hectares, is expected to add more than 2,000 homes. From 2026, Hanoi could welcome another 18,800 villas and townhouses.
Meanwhile, CBRE anticipates a moderate price increase of about 8% by the end of the year as a result of stable demand and limited inventory.
In 2024, Hanoi saw a strong low-rise housing supply. CBRE reported over 6,300 units launched across follow-up sales from major urban projects in Dong Anh and Ha Dong. The total number of units sold increased by 43% year-on-year.
