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JLL: Hanoi apartment supply down in Q1

Released at: 21:13, 13/04/2018

JLL: Hanoi apartment supply down in Q1

Photo: Ngoc Lan

Supply of approximately 9,000 units down 5.3 per cent quarter-on-quarter, according to quarterly report from JLL Vietnam.

by Ngoc Lan

Approximately 9,000 units were launched in Hanoi’s apartment market during the first quarter of the year, down 5.3 per cent quarter-on-quarter, according to a quarterly report released by JLL Vietnam on April 12.

Of the total, nearly 67 per cent came from Hoang Mai, Thanh Xuan, Nam Tu Liem and Ha Dong districts. Prices quoted for the new launches mostly ranged between $1,000 and $1,500 per sq m, which accounted for 47 per cent of the total.

Nearly 10,600 units were sold in the primary market during the first quarter, an increase of 7.7 per cent quarter-on-quarter and 29.7 per cent year-on-year. Sales rates of total available units improved 3.5 bps from 31.5 per cent in the previous quarter.

Among existing projects, sales remained good, with an average sales velocity of around 35 to 50 units per month during the first quarter.

Average primary market prices stood at $1,317 per sq m, down per cent quarter-on-quarter, resulting mostly from the extension of the low-priced segment.

Although registering a decrease on a non-chain-linked basis, a slight increase in chain-linked prices was seen in many projects, of around 1 per cent quarter-on-quarter.

Prices in the secondary market averaged $1,208 per sq m, stable quarter-on-quarter but down 9.5 per cent year-on-year. The decreases in secondary prices were seen in more buildings than in recent quarters, owing to increasing supply over the period.

JLL forecast that the market will welcome a wave of project completions. More than 47,000 new units are expected to be completed before the end of the year, 80 per cent of which are in the affordable and mid-end segments.

The low-priced segment leads the market, while affordable and mid-end apartments will continue to attract buyers, especially young families.

Sales in the second quarter may be impacted slightly by recently-emerging concerns over fire safety in apartment blocks.

Meanwhile, in Ho Chi Minh City’s apartment market, new launches in the first quarter totaled 13,647 units, down 10 per cent quarter-on-quarter but up 59.3 per cent year-on-year.

To the end of the year, new launches may reach nearly 45,000-50,000 units, dominated by the affordable and mid-end segments, the JLL report noted.

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