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Average asking prices in Hanoi down in most grades

Released at: 14:19, 13/10/2017

Average asking prices in Hanoi down in most grades

Photo: Ngoc Lan

Latest Savills report notes widespread fall in asking prices in capital.

by Ngoc Lan

Savills Vietnam has reported that Hanoi’s apartment market welcomed 13 new projects and the next phases of 16 active projects providing 6,170 units in the third quarter of 2017, down 3 per cent quarter-on-quarter but up 41 per cent year-on-year.

Grade B continued to dominate sales. Total sales were 5,660 in the quarter, down 17 per cent quarter-on-quarter but relatively stable year-on-year.

Average absorption was 24 per cent and average asking prices were down across most grades, to VND28.432 million ($1,247) per sq m.

According to a survey by Savills, the focus is clearly shifting to the more affordable housing segment with an increasing proportion of homebuyer demand.

Ms. Dang Phuong Hang, Director of Research at Savills Vietnam, told a recent press conference on Hanoi’s market in the quarter that the western area will continue to be active as it will account for more than 50 per cent of total market supply in the years to come. “The eastern area, with four new bridges, will also open up new development opportunities in the long term,” she said.

The report also noted that in the fourth quarter of 2017, there will be 42 launches of mostly Grade B and C projects.

However, Ms. Hang also said that the difference between home prices and income is creating a new trend towards renting rather than buying.

In Ho Chi Minh City, meanwhile, 13 new projects and the next phases of 16 active projects provided nearly 11,000 units in the third quarter. Primary supply is 35,000 units, down 2 per cent quarter-on-quarter and 11 per cent year-on-year.

Over 11,500 units were sold, down 2 per cent quarter-on-quarter. New project sales accounted for 32 per cent of the city’s transactions.

Grade A and B saw good quarterly performance, with Grade A the strongest, with 550 sales, up 149 per cent quarter-on-quarter. Absorption reached 32 per cent, stable quarter-on-quarter and up 13 percentage points year-on-year.

From the fourth quarter of 2017 to 2018, approximately 70,000 units from 60 projects are expected to be launched in Ho Chi Minh City.

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