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Hanoi market is in the stock of ten thousand apartments

In the near future there will be almost no new supply of villas in Hanoi

That is the information released by the deputy director of the Savills Research Department of Hanoi at the press conference to announce the real estate market in Hanoi quarter I / 2017.

The West will pour more than 4,000 apartments to the market

According to Hang, in the first quarter of 2017, there were 14 new openings and 21 open plans, with 9,220 units (down 10% quarter-on-quarter but up 39% year-on-year).

This helped increase total primary stock to 24,160 units (up 12% quarter-on-year and 49% year-on-year) and brought secondary stock to 156,940 units across the market.

Hanoi still has a large inventory of apartments
Hanoi still has a large inventory of apartments

Approximately 6,520 apartments were successfully sold in the first quarter, down 2% on a quarterly basis but up 16% year on year. Acquisition was down 4 percentage points quarter-on-quarter and down 8 percentage points year-on-year to just 27% due to a large supply.

“Grade B apartments still have the strongest consumption. However, with the primary supply of more than 2,4 thousand units, the number of Grade B apartments is still very large, estimated at about ten thousand units ( equivalent to 41.6%) – by the end of March, 2017, “Hang said.

Meanwhile, Grade A is showing good “style” when having the highest absorption rate in 3 grades; In the last quarter alone, 1,000 units were sold, equivalent to 50% of supply.

Western districts continue to be the main source of supply for the Hanoi market

Regarding the housing price index, Hang said that it is still relatively stable, only slightly decreasing by 0.4 percentage points quarterly and 1 percentage point year-on-year.

Savills forecasts that some 40,800 apartments will enter the market in 2017, mostly Grade B apartments from the western districts of Ha Dong, Hoang Mai, Bac Tu Liem, Nam Tu Liem and Thanh Xuan. However, Ms. Do Thu Hang also “disclosed” the amount of transactions in these districts (especially Cau Giay, Thanh Xuan) are on the decline because customers are concerned about the overload of transport infrastructure.

Besides, another noteworthy point that Ms. Hang also noted is the question of whether there is a cheap housing boom in 2017. “As of now, Savills estimates that the number of cheap flats offered in 2017 will reach about 35% of the estimated total supply, or about 3,570, with a boom or boom. Each one will make their own conclusions, “Hang said.

Approximately 74% of the adjacent villa projects are on paper

Savills report shows that in the first quarter, the villa market adjacent to Hanoi is relatively stable. Total supply of the whole market has reached 36,068 units (of which primary level: 2,824 units, more than 33,000 units) increased 3% quarterly and 14% year on year.

New supply in the quarter reached 1,005 units, provided by 3 projects. In particular, the segment of villas accounted for 58% and Vingroup was almost the dominant provider of this new supply. In terms of location, Long Bien District was led by 55%, followed by Tu Liem (39%) and other districts.

In the near future there will be almost no new supply of villas in Hanoi
In the near future there will be almost no new supply of villas in Hanoi

“The absorption rate in the quarter was 21%, down 9 percentage points quarter-on-quarter and 3 percentage points year-on-year, totaling 579 units, down 24% quarter on quarter but up 40% This is different from the previous quarter – when commercial houses have a large volume of transactions, “said Hang,

The primary selling price of villas has increased by 23% quarter-on-quarter, while adjoining segments remain stable.

Considering the need to buy, 52% of units sold are for investment 36% for accommodation and 12% for sublease.

Remarkably, according to Hang, in the coming time there will not be many sold out. “About 74% of the project (out of 78 future projects) is in the planning stage, while the rest are planning and clearance, so secondary prices tend to inch up.” Ms. Hang said.

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