Business
11,000 apartments transacted successfully in the first half of 2016
The propery market in Hanoi in the second quarter of this year saw a stable growth, Associate Director Research at Savills Vietnam Do Thu Hang said in a press conference in Hanoi on July 4.
According to tho Savills Vietnam's report, the city's apartment market continued high sales volume in the first half of this year. The total primary stock was 17,370 units, increasing 7% compared to the first quarter and 29% year-on-year. There were 10 existing and 16 new projects providing 6,700 units, increasing 1% quarter-on quarter.
There were approximately 6,000 sales, an increase of 7% quarter-on quarter and 30% year-on-year.
Grade B still had the highest primary sales volume with a 73% of total sales. Tu Liem district continues to record the most sales at 37%, mainly due to 2,250 sales of Grade B.
In the first six months of 2016, there were approximately 11,000 successful apartment transactions, Hang said.
According to the report, the second quarter of 2016 recorded no new addition to the supply of serviced apartments for sale in Hanoi. The total supply remained stable at 3,239 units, with more than 30% accounted for by two-bedroom units.
Grade A serviced apartments took up to 71% of the total supply, most of which were located in Tay Ho, Ba Dinh, and Tu Liem districts.
As of the end of the quarter, the average asking rent of Grade A and Grade B apartments were US$31.7 and US$21.7 per square metre per month (psm pm), respectively.
The highest rent rates continued to be charged in Cau Giay district, at US$36.3 psm pm in Grade A and at US$28.9 psm pm in Grade B, followed by Ba Dinh and Tu Liem districts.
There was a smaller deviation in the average price of grade A apartments by district than those of Grade B, indicating the heated competition among these projects.
According to the Vietnam Foreign Investment Agency, disbursed FDI was US$5.8 billion in the first five months of 2016, growing 17.2% year-on-year. Demand from Asian tenants continues to be significant due to higher FDI investment from the region.
In the second half of this year, 22,000 units from 41 projects, predominantly Grade B, are expected to launch, focused in Tu Liem, Thanh Xuan and Cau Giay districts. These projects include Lieu Giai Vinhomes Metropolis, My Dinh Pear, Sun Grand City Thuy Khue Residence and Hanoi Aqua Central.
In the soft hotel performance, stock increased 8% year-on year due to the entrance of one newly ranked 50 room 3-star and the closure of a 66 room 3-star.
According to the Hanoi Statistics Office, there were approximately 2.05 million international visitors to the city in the first half of 2016, up 34% compared to the same period last year.
From the third quarter onward, 33 future projects are planned to enter the market, of which fifteen projects will supply approximately 4,700 rooms. The remaining projects have yet to quantify their supply. In the second half of this year, a single new project will supply approximately 64 rooms.
There were approximately 6,000 sales, an increase of 7% quarter-on quarter and 30% year-on-year.
Grade B still had the highest primary sales volume with a 73% of total sales. Tu Liem district continues to record the most sales at 37%, mainly due to 2,250 sales of Grade B.
In the first six months of 2016, there were approximately 11,000 successful apartment transactions, Hang said.
According to the report, the second quarter of 2016 recorded no new addition to the supply of serviced apartments for sale in Hanoi. The total supply remained stable at 3,239 units, with more than 30% accounted for by two-bedroom units.
Grade A serviced apartments took up to 71% of the total supply, most of which were located in Tay Ho, Ba Dinh, and Tu Liem districts.
As of the end of the quarter, the average asking rent of Grade A and Grade B apartments were US$31.7 and US$21.7 per square metre per month (psm pm), respectively.
The highest rent rates continued to be charged in Cau Giay district, at US$36.3 psm pm in Grade A and at US$28.9 psm pm in Grade B, followed by Ba Dinh and Tu Liem districts.
There was a smaller deviation in the average price of grade A apartments by district than those of Grade B, indicating the heated competition among these projects.
Photo for illustration.
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In the second half of this year, 22,000 units from 41 projects, predominantly Grade B, are expected to launch, focused in Tu Liem, Thanh Xuan and Cau Giay districts. These projects include Lieu Giai Vinhomes Metropolis, My Dinh Pear, Sun Grand City Thuy Khue Residence and Hanoi Aqua Central.
In the soft hotel performance, stock increased 8% year-on year due to the entrance of one newly ranked 50 room 3-star and the closure of a 66 room 3-star.
According to the Hanoi Statistics Office, there were approximately 2.05 million international visitors to the city in the first half of 2016, up 34% compared to the same period last year.
From the third quarter onward, 33 future projects are planned to enter the market, of which fifteen projects will supply approximately 4,700 rooms. The remaining projects have yet to quantify their supply. In the second half of this year, a single new project will supply approximately 64 rooms.
