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Property

Hanoi apartment market seeing positive performance

Released at: 13:55, 02/10/2017

Hanoi apartment market seeing positive performance

Photo: Ngoc Lan

Latest CBRE report notes solid development in capital's apartment market.

by Ngoc Lan

The apartment market in Hanoi continued to see positive developments in the third quarter of the year, according to the latest report from CBRE.

Ms. Nguyen Hoai An, Director of Research and Consulting Services at CBRE Vietnam, told a recent press conference on Hanoi’s real estate market in the third quarter that 8,300 units were launched in 38 projects around the city.

The high-end segment has developed relatively cautiously. New supply in the third quarter reached 1,480 units, in areas such as West Lake and the city center, down 38 per cent compared to the average in the last four quarters.

As a result, supply in the high-end segment fell from 25 per cent to 18 per cent of total new supply against the average in the last four quarters. Meanwhile, the mid-end segment continued to expand, accounting for 71 per cent in the quarter and 50 per cent of total supply this year as at the end of the third quarter.

A total of 5,440 units were sold in the quarter, coming from new projects in convenient locations, which are costlier in terms of design, infrastructure, and product quality, as well as in projects with attractive sales policies.

Since the beginning of the year, a total of 16,200 units have been sold, equivalent to 79 per cent of sales in 2016 as a whole. “It can therefore be expected that sales in 2017 will continue to develop positively due to the normal higher vibrancy seen in the real estate market at the end of the year,” Ms. An said.

New supply will reach 35,000 units by the end of the year, of which sales will total 23,500. “Increased supply will create strong competition in the real estate market, causing developers to launch more preferential and discount programs to attract customers,” said Ms. An. “This will have a strong impact on investors.”

In terms of pricing, the average sales price decreased in the secondary market during the quarter compared to the second quarter, especially in finished projects, which were down 3 per cent quarter-on-quarter and 12 per cent year-on-year.

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