Savills Vietnam has just announced the Savills Property Price Index in November 2016 for the two major markets of Ho Chi Minh City and Hanoi.
HCMC: Real estate price index soared
According to the report, in the third quarter, only housing prices in HCM City increased 0.6 points quarter and 4.5 points per year reached 93.5 points. Trading volume was approximately 7,500 units, up 7% quarter on quarter and 43% year on year. The absorption rate was 19%, up 2 percentage points quarterly and year-on-year due to the good performance of Grade A and C.
While Class A and Class C have high transaction volumes, Class B trading declined by 12% quarter-on-quarter. Class C transaction reached more than 3,700 units, accounting for 50% of the total trading volume of the quarter. The A-share performance was relatively good at 780 deals, up 140% on a quarterly basis.
“Due to the price that suits most buyers, the C-segment attracts a large number of buyers with real demand. The owners provide reasonable prices thanks to development objectives in areas with large land funds, cheap land prices and infrastructure is gradually improving, “the evaluation report.
According to this unit, the areas around Vo Van Kiet Boulevard in the West and Pham Van Dong Boulevard in the East are hot zones for the development of the C-segment.
Hanoi: purchasing power decreases
In Hanoi, in the third quarter, the house price index was 105.8 points, up 1 point on quarter, but down 2.4 points year on average at an average price of VND 27.6 million/ sqm.
Read more: Vietnam Real Estate News
However, the total number of apartments sold was about 5,660, a decrease of 15% year on year. Absorption in the primary market was about 33%, down 2 percentage points quarter-on-quarter according to Savills, due to July lunar month and down 12 percentage points year-on-year.
Tu Liem still leads with 1,800 units sold (32% market share), equivalent to 44% absorption.
Grade B had the biggest sales in six consecutive quarters with 51%. While Grade An absorption dropped 8 percentage points quarter-on-quarter to 20% with 130 units sold and Grade B absorption rates at 34% down 6 percentage points on a quarterly basis with 2,900 units sold. Grade C was active with an absorption rate of 33%, up 8 percentage points with 2,620 units sold.
This unit reviews Circular 19 of the Ministry of Construction has tightened resale procedures, limited short-term investors and forecast Ha Dong and Hoang Mai will face high pressure with 48% of supply future.
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