11:52 (GMT +7) - Wednesday 15/08/2018

Property

Hanoi apartment segment vibrant

Released at: 14:57, 14/07/2018

Hanoi apartment segment vibrant

Photo: Ngoc Lan

Savills releases latest quarterly report on capital's real estate market.

by Ngoc Lan

Hanoi’s real estate market saw a vibrant apartment segment in the second quarter of this year, according to Savills’ Hanoi quarterly market report released on July 11.

Eleven new projects and the next phases of 31 projects launched 9,760 units in the quarter, up 77 per cent quarter-on-quarter and 43 per cent year-on-year. Primary supply was 28,000 units, up 17 per cent and 14 per cent.

Sales were up 31 per cent quarter-on-quarter and 11 per cent year-on-year, while average asking prices were $1,160 per sq m, down 7 per cent and 12 per cent.

                                                                                       

Grade B accounted for nearly 60 per cent of the total, followed by Grade C with 38 per cent. The districts of Tu Liem and Ha Dong accounted for many sales.

Ms. Dang Phuong Hang, Director of Research at Savills Vietnam, said that many sales were made in Cau Giay, Tay Ho and Tu Liem districts in the second quarter, primarily 60-75 sq m apartments. “For investors in the west of the city, the area is critical to the success of the project,” she said.

More than 14,300 units will enter the market from 20 projects in the second half of 2018, mostly Grade B and Grade C.

Referring to the possibility of a “bubble” in the future, Ms. Hang confirmed that the market is still stable, especially in the apartment segment. “We should not be too worried about a market crisis,” she said.

Savills also released a report on Ho Chi Minh City's real estate market in the first quarter, on July 6.

Sixteen new projects and ten new phases supplied approximately 10,600 apartments, up 125 per cent year-on-year.

Primary supply was over 25,400 units, down 11 per cent quarter-on-quarter and 30 per cent year-on-year.

Strong overall market performance was evidenced by approximately 14,400 transactions, up 6 per cent quarter-on-quarter and 22 per cent year-on-year.

Grade B performed well, increasing 16 per cent quarter-on-quarter and 61 per cent year-on-year, while Grade C remained the market driver, with 60 per cent of total transactions.

To 2020, over 129,100 units from 97 projects will be added to supply. District 9 is expected to have the largest proportion, with 31 per cent.

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