Ha Noi: Real Estate Market In The Second Quarter Of 2017 Witnessed Many Positive Developments

Comments on real estate market in quarter II/2017, CBRE said that the market recorded many positive developments, the progress of construction quickly, investors pay attention to the development of infrastructure and utilities…

According to CBRE, house attached to land in the second quarter of 2017, five low-rise housing projects opened for sale, adding 326 units to the market. The two projects located in the west are the Embassy Garden and the Romantic Park, which accounted for 54% of the total new supply in the quarter. In addition, 38% of units opened for sale in the quarter are coming from the East with the Rice City project and Hoa Vien Mansion (in Dang Xa urban area). The number of units opened for sale in the second quarter was lower 1.200 units than the previous quarter, mainly from small-scale projects. Meanwhile, some large-scale high-end projects expect to open for a long time but delay the delivery.

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“The housing market witnessed many positive developments in the second quarter, with 1.205 units sold in the quarter. New high-value projects such as Vinhomes, The Harmony, Romantic Park, Starlake and Gamuda have made the primary market average stable at $ 3.700 per square meter. Along with that, secondary prices in the market also increased by 1,7% over the previous quarter and 4,3% over the same period last year, to $ 3.826 / sqm. Most of the urban districts such as Dong Da, Tu Liem, Ha Dong and Thanh Xuan recorded prices increase by 0,8% to 6% over the previous quarter,” said.

This unit shows notable spots in the second quarter were large-scale projects with rapid construction progress such as The Manor Central Park, Splendora Stage 2 (Lakeside) and Starlake Tay Ho Tay. This is a signal that these projects are likely to be open for sale in the near future.

Second quarter market segment

In addition, 146 adjacent apartments from Park City Phase 3 and 493 remaining apartments of Vinhomes The Harmony project are expected to significantly add to market supply in the second half of the year. In addition to the strict construction progress, the inventors of the projects pay great attention to the development of infrastructure and utilities inside the urban area in order to bring the residents not only the services but also the quality of the high services.

For the office rental segment, by the end of quarter 2 in 2017, the office market welcomed a Grade B office building into operation – HUD Tower, providing an additional 24.000 sqm of NLA to total office supply.

According to CBRE, grade A buildings saw an improvement in both rent and vacancy rates. Rental prices increased 2,2% give to $24,1/sqm/month (excluding service and tax). The absence of new supply also reduced the vacancy of grade An office space by the second quarter 2017, down 2% from the previous quarter at 11,2%. For grade B, rents were relatively stable compared to the previous quarter. Average vacancy of grade B office continued to increase to 17,4%, up 1% due to new supply.

Low-floor real estate market in the second quarter

The absorption rate reached about 20.000 square meters in the quarter. The absorbed area mainly comes from buildings outside the center.

CBRE forecasts that in the future, the market will continue to expand to the out-of-center area, as the buildings are about to open mainly in the West and Dong Da – Ba Dinh areas.

Because no new grade A building will be operational by 2017, existing grade A buildings are expected to continue to deliver satisfactory performance. Grade B office market will continue to be competitive as new supply continues.

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