In the first quarter of 2025, the low-rise housing market in Hanoi saw a clear downward trend in prices of villas, rowhouses, and shophouses. According to Savills, primary villa and rowhouse prices fell 14 percent, averaging VND282 million per sq m and VND239 million per sq m, respectively, while shophouses dropped 12 percent to VND278 million per sq m.

The market absorption rate reached 41 percent, up 13 percentage points from the same period in 2024, indicating improving buyer sentiment.

Primary transactions continued to redirect strongly toward suburban areas, especially Dong Anh district where 52 percent of transactions were made, followed by DanPhuong with 43 percent. Other areas like Thuong Tin and Ha Dong contributed about 5 percent.

The quarterly decline in primary villa and rowhouse prices in Hanoi, according to Do Thu Hang from Savills Hanoi, is due to new project launches in suburban areas offering lower prices compared to previous projects.

In contrast to the primary market’s price decline, secondary market prices recorded an upward trend. Villas increased 10 percent to VND195 million per sq m, townhouses rose 15 percent to VND227 million per sq m, and shophouses climbed 9 percent to VND266 million per sq m.

Despite a more active secondary market, current price levels remain a major barrier for many investors. According to Savills, villa prices have risen an average of 29 percent per year, rowhouses 22 percent, and shophouses 11-16 percent in recent years.

Notably, low-rise properties under VND20 billion are becoming scarce. In the first quarter, properties priced above VND30 billion accounted for 36 percent, a sharp rise from 17 percent compared with the same period last year. The VND20-30 billion range dominated with 62 percent, indicating an increasingly high investment threshold.

Experts note that this poses challenges for investors regarding profit expectations, especially with product prices at high levels.

The supply of low-rise housing in Hanoi is expanding in suburban districts with competitive primary prices compared to secondary projects near Ring Road 3. For instance, at a newly launched phase of an urban area in DanPhuong district, 96-120 sq m townhouses are being offered at VND15-25 billion. For semi-detached products, prices are VND33-45 billion per product.

Villas and rowhouses in Tan Lap commune (Dan Phuong district) are commonly listed at VND157 million per sq m. Some 75 sq m townhouses there are offered at VND8.5-10 billion. According to local brokers, two years ago, prices were only around VND4-6 billion per unit. 

Hong Khanh