Ha Noi remains positive development on property market in Q4

Wednesday, Jan 11, 2017 15:34

The Ha Noi real estate market saw strong development in the condominium, villa and townhouse segments in the fourth quarter of 2016 and experts predict further growth this year. — Photo tinbuoisang.net

The Ha Noi real estate market saw strong development in the condominium, villa and townhouse segments in the fourth quarter of 2016 and experts predict further growth this year.

Nguyen Hoai An, manager of professional services at CBRE Viet Nam Co, said at the company’s press conference yesterday that 9,128 units were avilable for sale in 34 projects across the city last year.

The fourth quarter peaked both in terms of launched units and launched projects, she said. The western sections of the city accounted for 37 per cent of new launches, more than the 20 per cent of 2015.

In terms of price segments, 56 per cent of units were mid-range, 30 per cent were high end and 11 percent in what is called the affordable segment.

2016 marked the return of the luxury segment, with two projects located near the Westlake area. At the same time, supply in the affordable segment dropped significantly - 71 per cent. However, with big developers starting to eye this segment, that trend is expected to change.

Overall, market sentiment remained positive, An said. In the fourth quarter, a total of more than 6,600 units sold adding up to 21,188 for the year. The mid-end segmentcontinued to perform well with more than 10,100 units sold in last year, accounting for nearly half of total units sold. By location, Hai Ba Trung and Ba Dinh were districts recording to the highest sale rate of new launched projects.

In terms of average asking price, the high-end segment went up 9 per cent and the mid- and affordable-range segments rose 2 and 1 per cent, respectively.

In the secondary market, the average prices dropped slightly by 0.5 per cent. Only the asking prices for affordable apartments rose - 1.9 per cent.

An said the condominium market was expected to remain upbeat this year, supported by sound macroeconomic factors including positive gross domestic product (GDP) growth, a stable exchange rate and high inflow of foreign direct investment (FDI) to Viet Nam, especially to real estate, from South Korea, Japan and Singapore.

The west end of Ha Noi was forecast to continue dominating building start-ups. However, large-scale projects were expected to be scattered in different areas of the city. By segment, big developers may introduce large-scale projects in affordable segment, significantly boosting the shares of this segment in new building start-ups. In terms of pricing, the average primary asking price was forecast to increase 0.5 per cent to 4 per cent in the coming years.

Meanwhile, Savills Viet Nam Co Ltd reported its total stock was approximately 35,000 dwellings, up 12.8 per cent from 2015.

Sales increased 129 per cent q-o-q to 766 units, of which 64 per cent were townhouses. Dominating in sales this quarter were Tu Liem with 24 per cent and Ha Dong with 23 per cent. Villa and townhouse sales exceeded the former record set prior to 2011.

In the first quarter 2017, more than 2,300 dwellings are expected to enter the market, mainly from Vingroup.

Expert Dang Hung Vo said stability in the property market this year would continue in all segments but would focus on the mid-end and affordable segments. Foreign investment would continue to flow to the property market, increasing housing supply. Consumers would benefit from the increase, with reasonable prices, quality and convenient services, he said.

The HCM City Real Estate Association agreed to have stability in selling price and transactions this year. — VNS

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