As reported by CBRE, by the end of the third quarter 2017, the total supply of new apartments for sale in Hanoi has exceeded 25,000 units. Forecast until the end of this year, the supply will reach 35,000 units – the highest in 5 years.
High-end apartment supply declined sharply
In the third quarter, Hanoi apartment market continued to witness positive developments. On new supply, the market received more than 8,300 new openings from 38 projects (up 6% y / y and up 3% yoy). This number helped to increase the total number of openings from the beginning of the year to 25,574 units. New supply remains concentrated in the western and southwestern regions, which account for 60% of total market supply.
It is worth noting that in the third quarter, the high-end segment was relatively cautious. Open new supply in the quarter was 1480 units, concentrated in familiar areas such as West Lake or downtown. The opening was down 38% from the average of the last four quarters. Thus, the market share of high-end segment of new supply also decreased from 25% (average 4 quarters) to 18%. Meanwhile, the mid-range segment continues to expand, accounting for 71% of sales in the quarter and 50% of total stock in the third quarter.
On the consumption situation, the quarter has a total of 5,440 units sold, up 3% year on year and up 18% quarterly. Accumulated from the beginning of the year, the number of units sold is 16,200 units – equivalent to 70% of sales in 2016.
“It is expected that sales in 2017 will continue to be positive as the market is often active at the end of the year, with sales expected to reach 23,500 by 2017,” CBRE said. .
Regarding selling prices, CBRE said that prices in the primary market in all segments are relatively stable, no difference too large compared to the previous quarter. In the secondary market, due to relatively fast growth in primary stock, the average price tended to decrease. Particularly, in completed projects, the rate dropped to 3% on a quarterly basis.
In the fourth quarter, the market is expected to welcome new projects, bringing total supply to a record high of 35,000 new openings.
Consumption of villas, adjoining fell sharply
In the third quarter, the adjacent villa market was added 1,055 units, of which 84% were adjacent houses. Four newly opened projects include: Louis City (Ha Dong), The Eden Rose (Thanh Tri), The Mansions – Park City Phase 3 (Ha Dong) and Iris Home – Gamuda Phase 3 (Hoang Mai).
Since the beginning of the year, there have been more than 2,600 villas and townhouses open for sale, equivalent to 59% of the total units opened last year. The western region is still considered as the most new source of supply, accounting for 50% of the total new market supply up to the present.
Consumption of adjacent villas in Hanoi in the third quarter declined sharply over the same period
Units sold in the quarter reached 622 units, down 52% from the previous quarter and 78% from the same period last year, partly due to the limited supply of the previous quarter. Up to the end of the third quarter, the villa market – adjacent to the sale of 2,900 units, in which the west accounted for the highest proportion (63%).
New offers for the coming quarter from Park City and Gamuda. There are also previously offered products such as Vinhomes Gardenia, Ciputra, Vinhomes The Harmony. These projects have relatively high primary price, helping the average primary price is relatively stable at $ 3,700 / sqm.
However, on the secondary market, prices have fallen 3.3% qoq to $ 3,790. In Thanh Xuan, Nam Tu Liem, Dong Da, and Hoang Mai, the rate dropped from 1.7% to 7% compared to the previous quarter.
Meanwhile, new high-quality new districts, such as Tay Ho, Long Bien and Northern Tu Liem, saw a rise in the secondary price of 0.4% to 4% compared to the previous quarter. Outside of the CBD, the western zone was recorded as having the highest secondary price and above the current market average.
IV quarter is expected to be exciting in the villa market – adjacent, with many large scale projects will be open for sale, such as: The Manor Central Park, Splendora, Starlake …
“Stronger infrastructure in the west will continue to help maintain a strong demand in this region.” In addition, the eastern region offers future prospects for infrastructure development, connectivity Better than the central area through many new bridges, will also attract more attention of investors as well as buyers of housing to stay, “CBRE said.
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