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Sales Of Houses In HCM City Has The Highest Increase In 5 Years
Date: 13-10-2017 | 07:11
(VNF) – Savills has announced Savills Property Price Index in August 2017 for two major markets: HCMC and Hanoi
Home that suits pocket leading transactions in HCM city
According to Savills, the supply of medium and high-end segments is stable, helping index for housing prices in HCMC increases sharply compared to 2016. However, this index slowed down in the second quarter of 2017 at 93 points (only 1 point increase quarter-on-quarter and remained unchanged by year).
Sales of the market reached 11,700 units, up 36% quarter on quarter and 68% year on year – the highest in five years. Good business performance of the B and C segments is attributable to a 10% point increase in absorption by quarter and 14% point year-on-year.
Class C continues to dominate the market with 62% of total transactions. B-level transactions reached more than 4,200 units, up 35% quarterly and 24% year on year.
Sales in the market. HCM reached 11,700 – highest in 5 years (illustrated)
Since 2010, primary grade C supplies have grown by 15% annually. Due to the reasonably priced prices, this segment continues to outperform other segments. Western counties alone account for more than 3,000 transactions in this segment.
In Hanoi, the housing price index in the second quarter of 2017 reached 106.1 points, down 1 point quarter on quarter and 2 points year on year. The average selling price was 1,209USD / sqm or 27.5 million VND/sqm. The increasing pressure of secondary supply causes prices to fall. Primary Grade A prices also fell as new projects offered prices lower than the market average price level.
The average absorption rate was 28%, up 1 percentage point quarter-on-quarter but down 7 percentage points year-on-year. Trading volume reached 6,790 units, up 5% quarter on quarter and 13% year on year. Class B works best with the best results, accounting for 42% of the market share.
In the second half of 2017, approximately 23,500 apartments from 45 projects will be launched to the market. Low-cost apartment projects that are still well equipped with local amenities are expected to attract buyers.
Grade A office “topped” for 2 years
The report of Savills also provides office index in HCMC in the second quarter of 2017. Accordingly, the office index was 89 points, up 2 points on a quarterly basis and 7 points on a yearly basis. This is the result of a 4% increase in rents on a quarterly basis and 5% on a yearly basis. With the entry of three new projects, the average capacity dropped slightly by 1 percentage point to 96%.
A new Grade A office project in District 1 has increased the competition in the central area, resulting in the annual capacity reduction of 2 percentage points. However, the central area index rose 2 points quarter-on-year and 10 points on a year-on-year basis as rents rose by 4%.
Year-to-date capacity increases by 1 percentage point are the main reason that the non-hub office index rose 1 percentage point year-on-year.
Total office consumption is 25,500 square meters, up 477% on a quarterly basis and 79% on a yearly basis. Grade A has the largest consumption in 2 years with over 19,000 sqm. New buildings have been booked since last quarter.
Non-CBD indexes rose 2.2 points quarter-on-quarter and 7.6 percentage points year-on-year, as occupancy increased 3.7 percentage points quarter-on-quarter and 8.6 percentage points year-on-year.
In Hanoi, in the second quarter of 2017, the office index was 65.2 points, up 2.2 points from the first quarter and 5.8 points per year, mainly due to a 3.7% point increase in occupancy per quarter and 7.4 % points per year.
Central and off-center areas recorded quarterly and yearly improvement. Capacity increased by 3.7 percentage points quarter-on-quarter and 2.4 percentage points year-on-year, making the CBD increasing by 3.0 points quarter-on-quarter and 1.6 percentage points year-on-year.
The CBD will not welcome new supply over the next two years, which will help ease regional pressures and push up average rents.
In contrast, the increase in new supply in the non-CBD area offers many options for tenants and puts pressure on developers to make them consider rent adjustments to increase competitiveness.