Savills property price index up in major cities

Savills, the Viet Nam property service provider, reported yesterday that in the third quarter, Ha Noi's residential SPPI was 102.7, a 2.4-point quarter-on-quarter (QoQ) increase and a slight 0.6-point year-on-year (YoY) increase. — VNS Photo

HA NOI (Biz Hub) — The Savills property price index (SPPI) for residential and office markets here and in HCM City increased in the third quarter of 2014.

According to Savills, the quarter witnessed a significant rise that can be considered as a positive signal from market.

The inventory ratio declined sharply by 24 percentage points QoQ and 26 percentage points YoY because of the entire market's strong performance. This quarter, the absorption rate in Ha Noi was 38 per cent, a 15-percentage point QoQ increase.

The average price in the third quarter was approximately VND25.2 million per square meter, a two-per cent QoQ increase. Hoan Kiem, Tay Ho and Ba Dinh districts had the highest prices because of their central location and numerous upscale projects.

In HCM City, the residential index was 89.5, the same as last quarter and a 0.7-point YoY increase. The overall absorption rate was 19 per cent, a two-percentage point increase QoQ and a seven-percentage point increase YoY.

Approximately 3,280 units were sold, a 29-per cent QoQ and 85-per cent YoY increase, representing the highest transaction volume since the fourth quarter of 2010. — VNS