While the second quarter didn’t see much action in terms of project launches or sales in Vietnam due to ongoing COVID-19 restrictions, the situation is not all doom and gloom. Savills remains optimistic about villa and townhome market in Ho Chi Minh City and Hanoi.
Starting with the former location, villa and townhome future supply in Ho Chi Minh City is expected to reach nearly 9,600 dwellings/plots by 2024, according to the consultancy. Thu Duc City has the most upcoming supply at 33 percent. Buyers are drawn here because of strong urban planning and infrastructure appeal. Binh Chanh and and Binh Tan are also areas to take note of.
“Ho Chi Minh City landed property has easily retained interest. The absurdly low supply volume guarantees purchaser favor, but also pushes demand into alternative locations such as Dong Nai, Binh Duong and Long An,” Vo Thi Khanh Trang, Associate Director of Research at Savills HCM, stated.
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Over in Hanoi, a lack of activity in the villa and townhome market declined due to a number of factors. including buyer caution, limited new supply and expensive remaining stock. That being said, Savills Vietnam sees this quarter as a lull. Robust future supply and strong demand witnessed earlier in 2021 creates a promising market outlook moving forward.
“Globally, liquidity has increased alongside diversity in products as the Covid rest has pushed alternative residential and lifestyle choices. Following a quarter break of social distancing, Ha Noi’s landed residential market is expected to bounce back quickly with strong demand and good future supply,” Matthew Powell, Director at Savills Ha Noi, reported.
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