The sale of villas and townhouses in Hanoi and Ho Chi Minh City hit record numbers in the last quarter of 2016, according to Savills Vietnam. A total of around 800 units were sold in the fourth quarter of 2016 in Hanoi, up 129 percent quarter ­on­ quarter, and the highest number since 2011. Of these, 64 per cent were de­tached houses. Leading the number of transactions in the fourth quarter was Nam Tu Liem and Bac Tu Liem districts (24 percent), and Ha Dong district (23 percent). Nearly 35,000 villas and town­ houses were launched for sale in the last quarter of 2016, up 4.9 percent against the third quarter and 12.8 per cent year­on­year. Nam Tu Liem, Bac Tu Liem, Ha Dong, and Long Bien are § the districts with the highest supply ­some 50 per cent of the market's total S stockpile. Major projects sold in 2016 were Botanica, a part of Vinhomes Garde­nia; Vinhomes Thang Long, Vin­ homes Paradise Me Tri, and Vinhomes Long Bien, invested by Vingroup; Ecopark, invested by Viet Hung New Residential Area; and Gamuda Gar­den, invested by Gamuda Land. Due to the frenzy of demand, many developers are actively resum­ing their delayed projects. Nan Cuong Group recently re­sold its An Phu townhouse project in Duong Noi New Urban Area, while FKC reset work on its FKC Garden City and Eco House Sai Dong. More than 2,300 villas and town­ house arc expected to launch in the first quarter of 2017, mainly from Vin­ group's projects. In Ho Chi Minh City, the transac­tion of villas and townhouses in 2016's last quarter also rose 49 per cent quarter­on­quarter. Three new projects and the next phases of three existing projects provided approxi­mately 550 homes to the primary market. The primary stock reached about 3,000 homes, down 22 per cent quar­ter­on­quarter but up 55 per cent year­ on­year.
In the last quarter of 2016, due to limited new launches, villa and town­ house sales decreased by 18 per cent compared to the third quarter, with townhouse sales accounting for a 70 per cent share.
The absorption rate was 33 percent, a slight increase compared to what it was in the third quarter of 2016 and the fourth quarter of 2015. Districts 2 and Nha Be accounted for the most sales.
Medium to large townhouses of 90 to 120 square metres continued to sell well. Additionally, there  was a high demand for projects with favourable payment schemes.*

By Quynh Chau