Subdivision of villas as high-end market downs
Subdivision of villas as high-end market downs
Hanoi’s high-end real estate segment is predicted to decrease in supply and see an increasing trend of subdividing villas and townhouses into smaller flats.
Hanoi is expected to have 12 additional projects with 2,500 units of villas and townhouses this year, down by 50 per cent compared to last year, property consultancy firm Savills Vietnam stated in a recent survey.
Villas and townhouses in the two districts Ha Dong and Long Bien are preferred due to prices ranging from $2,500-$3,500 per sq.m, deemed reasonable and competitive when compared to prices in the two inner districts of Cau Giay and Dong Da, and the outskirt district of Thanh Tri.
In the upcoming months, the Hanoi market will continue to see new villa projects such as Bitexco’s Manor Central Park, Athena Fulland in Thanh Xuan, and FLC Premier Park in Ha Dong, Hang told VIR.
The villa subdivision trend is still thought to attract investors. This could help reduce the prices of subdivided villas and townhouses ranging from $300,000 to $700,000 per unit. This would make high- and middle-income buyers potential customers, the Savills research director said.
Several real estate developers have already raised efforts to obtain a legal permission on the subdivision of villas. For instance, DIA Investment and Development JSC recently succeeded in gaining Hanoi authorities’ approval for adjustments to the Phoenix Garden villa project. Previously, the project consisted of 468 villas with three categories of 400, 600, and 800 sq.m. After the approval, these villas will be subdivided into units of 200 sq.m.
Hibrand Vietnam is following the trend in expanding the La Casta project with around 85 townhouses in Van Phu urban area in Ha Dong district. The project consists of 359 low-rise blocks of 71-176 sq.m each, including 199 commercial townhouses.
Nguyen Thuy Trang, head of Hibrand’s communication department, noted that the project is considered a key location for infrastructure development. With many trade centres and social facilities, subdivided villas will attract further investments and customers, Trang said.
Expected to ease the connection between inner Hanoi and the outskirt districts, the nearly-finished Cat Linh-Ha Dong railway project and the already operating Yen Nghia-Kim Ma express bus route are putting a spotlight on such property projects, including high-end sites in Ha Dong and surrounding areas.
“Real estate projects along the approved metro routes in the period of 2018-2025 and the upgrade of belt roads 2.5 and 3.5 will draw the attention of investors,” said Do Thuy Hang, associate director of research for Savills Hanoi. The 30km belt road 2.5 is planned to stretch along urban districts, including Tay Ho, Bac Tu Liem, Cau Giay, Thanh Xuan, and Hoang Mai. Meanwhile, belt road 3.5 is set to pass through outskirt districts, namely Dong Anh, Hoai Duc, Ha Dong, Thanh Tri, and Gia Lam.
