Hanoi sees Q3 surge in mid-end apartment sales
Sales of mid-range apartments in Hanoi increased during the third quarter, a leading real-estate firm has reported.
The third-quarter report by CB Richard Ellis Vietnam Ltd Co (CBRE Vietnam) says more than 6,800 new units were launched from 16 projects, a quarter-on-quarter increase of 14%, but a decrease of 38% year-on-year.
Mid-range products still dominated the new launches, although new supply from high-end and luxury apartments also increased significantly, the report said.
In particular, around 3,000 apartments from these segments were launched this quarter, accounting for 45% of total new launches.
Overall, the third quarter experienced a positive market sentiment, as sales caught up fast with new launches. A total of 5,279 units were sold, an increase of 52% compared to the last quarter.
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| A view of MBLand Central Point My Đinh (MBland Home 3) project which is under construction in Hanoi’s Tu Liem District. |
The report said sales also maintained an upward trend since the beginning of this year in the high-end segment.
In the first three quarters of 2016, approximately 14,200 units were sold, with mid-range apartments making up nearly 50% of this figure, CBRE Vietnam said.
Another leading real estate firm, Savills Vietnam, also said mid-range apartments recorded the highest primary sales volume for the 6th consecutive quarter, totaling 51% of sales. The absorption rate decreased two percentage points q-o-q to 33% but the average asking price was stable, it said.
Meanwhile, a report by the Rong Bay Real Estate Trading Floor said that in general, the domestic property market would remain stable this year-end and early next year.
If, in the coming time, the State issues new policies encouraging people to buy property, the local real estate market would see stronger growth, this report said, noting that it was a good time for buyers because of high supply, stable prices and many preferential offers from sellers.
The report said that in Hanoi, the western region would be “hot” and experience strong growth because of many advantages in infrastructure in the area, as also Ha Dong District.
Large property investment firms like Vingroup, FLC and Bitexco have many projects in the area.
The trading floor expects that the western region will provide 70% of the apartment supply for capital city market, with selling prices increasing by 7% in the near future.
Demand for apartments and house was still high, so property transactions in “good projects” will continue to rise, said Nguyen Van Tuan, CEO of Rong Bay Real Estate Trading Floor.
He reiterated that the region’s developed infrastructure would attract both home-buyers and property investors.
Home-buyers are likely to choose this region because it is convenient to live, study and work here, while investors will see it as a safe investment destination with potential for higher profits, he said.
In its quarterly report on Hanoi, Jones Lang LaSalle Vietnam Ltd Co (JLL Vietnam) said more than 11,000 new completions were expected in the last quarter of 2016, nearly 70% of which would be in the mid-range segment.
It estimated new supply for the last quarter at 10,000 units, with 50%-60% of the launches coming from existing projects.
The company said apartment sales would also rise to new highs following expected increases in supply and greater interest among both owner-occupiers and investors. Prices would continue rising because of new launches and improved conditions, it said.
