Hanoi apartment market: Supply climbs thanks to Covid-19 containment
The Hanoitimes - New apartment launches in the third quarter of 2020 rose 79% on-year.
Supply of apartments in Hanoi rose significantly in the third quarter of 2020 (3Q20) thanks to the containment of the novel coronavirus nationwide.
The new supply surged following virus containment nationwide, adding around 5,219 units to the market, up 79% on-quarter, leading real estate and investment management firm JLL has said.
|A luxury apartment complex in Hanoi|
While Covid-19 outbreak coupled with prolonged approval process stalled most first-time launching properties in previous quarters, the market witnessed six new projects in 3Q20.
The new supply was predominantly attributed to the affordable and mid-end apartments that accounted for 91% of the total. In high-priced segments, 314 units from two Luxury projects D’ Palais De Louis and Grandeur Palace were released back into the market after a period of being put on hold to complete the legal documents and revise the selling strategy respectively, posting the highest quarterly official launches since 2018.
|Hanoi's apartment total launches and average primary prices in third quarter 2020. Source: JLL Research|
Low and mid-end apartments remain favorable: Although the resurgence of Covid-19 in July and economic uncertainty has weighed on investment sentiment, sturdy demand towards affordable apartments allowed the total sales volume up 3.3% on-year.
Newly launch projects including Vinhomes Smart City, Grand Sapphire, Phuong Dong Green Park and Binh Minh Garden reported a combined sales rate of 74% in the early stage of development thanks to its lower-than-average unit value and convenient location with easy access to main roads. Besides, the encouraging environment for homebuyers was partly supported by the lowered home loan interest rate from commercial banks.
Prices: The average primary price level saw a slight growth of 0.6% on-year and 3.9% on-year thanks to new launches with prices above-average. However, prices declined marginally 0.5% on-quarter on a chainlink basis as some developers with cash flow pressure tried to boost sales via further discount and more relaxed down payment schemes.
Projects that have discount more than 10% were able to clear their inventory faster while those with prices unchanged are struggling to attract buyers.
Outlook: JLL predicted another 5,000-7,000 units are set to be launched in the last quarter of this year, of wchih Vinhomes Smart City will contribute a large proportion and thus more sale activities are expected.
The sale will likely hold steady growth thanks to sustained owner-occupied interest. Besides, the prevailing trend of the township’s primary developers to join hands with sub-investors to develop latter phases of the developments is expected to continue in the near term.
- What makes Phu Quoc’s real estate attractive to investors?
- Covid-19 causes insolvency of real estate enterprises
- Five key trends in the Vietnam property market 2021
- Hanoi retail occupancy up on well-performed economy
- Hanoi’s shophouse records new prices
- Real estate accounts for 7.6% of Vietnam economy
- Hanoi proposes stopping commercial housing projects
- Hanoi, Ho Chi Minh City seen as regional metropolis for foreign investors
- Hanoi tops localities for low-cost houses
- Foreign investors show growing interest in Hanoi Grade A office
Old green trees - a special heritage of Hanoi
Vietnam needs to build hub airports
The reasons that make Son Doong Cave to be a great wonder of the world
Vietnam eyes potential of homemade Covid-19 vaccine
Securities association expresses concern over prospect of 1,000 shares minimum trading lot
Vietnam repatriates citizens from Myanmar
Online schooling - a challenge for students and teachers
Vietnam Airlines attendant prosecuted for spreading Covid-19
Exhibition: “Those who do not move, do not notice their chains”