Savills Q3/2022 market report highlighted that large complexes outside of the core or in satellite provinces had the majority of the villa, townhouse, and apartment supplies and sales in the third quarter. Although these properties are not in CBD, they are performing well, but who is buying them?
Mega Projects Perform Well
In Q3/2022, Ha Noi residential market saw improvements. The Q3/2022 market report noted that new apartment supply increased by 235% quarter-on-quarter (QoQ), which came from seven new projects and the next phases of seven existing projects. There were 489 new villas and townhouses from three new projects and the next phases of three existing projects.
Much of the new supply came from residential projects like Vinhomes Ocean Park (Gia Lam, Ha Noi) and Vinhomes Smart City (Nam Tu Liem, Ha Noi), which had 66% of the new apartment launches and 55% of sales in Q3/2022. Vinhomes The Empire (Hung Yen) has had 10,000 villa and townhouse sales since it launched in the second quarter. The demand for property in outlying areas is made clear by the performance.
(1).jpg "Ms Do Thu Hang, Senior Director of Advisory Services, Savills Ha Noi")
Ms Do Thu Hang, Senior Director of Advisory Services, Savills Ha Noi, noted: “Villa and townhouse projects in the central districts must compete with projects in the outskirt. Unlike central properties, outlying projects have access to large and affordable land banks, especially in Hung Yen. These decentralised projects will continue to meet the unmet demand from Ha Noi. Despite being further from the CBD, the affordable prices and diverse amenities are a significant pull.
Unique Offering
Unlike the CBD, surrounding provinces like Hung Yen and Bac Ninh have large land banks. Investors can develop large projects with diverse products quickly and affordably. Ms Hang noted: "Developers design the projects carefully. The amenities and landscaping work in harmony with the infrastructure and the properties. Often, they create internal ecosystems, which is a USP for outlying projects."
According to the Global Destinations for Second Homes report by Savills Global, wellness is a top riority for buyers. They want properties with gardens, and many want amenity systems that improve quality of life. These include the use of innovative technology, resort facilities and health services.
Outlying properties can meet these demands because of the large space available. Vinhomes Ocean Park delivers resort living and even has an artificial beach. Vinhomes Smart City is an ‘intelligent city’ that implements smart homes, smart services, a security system that utilises artificial intelligence and an IoT (Internet of Things) management system. Ecopark meets the demand for natural spaces with large parks and lakes.
Outlying projects and areas have the greatest future supply. Nam Tu Liem, Thanh Xuan, and Gia Lam districts will have 80% of the future apartment supply. By 2024, satellite provinces like Hung Yen and Bac Ninh will provide approximately 104,800 units. Vinhomes The Crown (Hung Yen) is expected to deliver 8,500 landed properties and will launch the first 1,300 in Q4/2022.
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