Property
Hanoi: mid-end, affordable houses dominate market in Q2/2019
Mid-end and low-cost segments took up 98% of Hanoi`s condominium market in Q2.
Up to 98% of total new launches in Hanoi in the second quarter (Q2) this year came from mid-end and affordable, a latest report by CBRE has shown.
Approximately 6,400 units were launched in Q2/2019, totaling around 17,700 units in the first half (H1) this year, recording one of the highest six-month period figures.
During Q2, only two high-end projects opened to the market which is from Tay Ho district.
Sales momentum of the overall market were relatively positive in Q2 with more than 40% of units launched during the quarter having been absorbed. In total, about 6,900 units were sold during the quarter, up 17% on year.
Active sales activities and good construction progress from both townships and standalone projects have contributed to overall positive sales performance during H1, CBRE said in the report.
In terms of pricing, selling prices in the primary market in Q2 averaged US$1,337 per square (sq.m), an increase of 4% on year.
Noticeably, high-end segment recorded an average pricing level of US$2,345/sq.m – the highest pricing level of this segment observed over the past five years.
Moving forward, the level of new supply is expected to stay at above 33,000 units in 2019 – a relatively similar volume as seen during 2016-2018 period.
Meanwhile, the mid-end segment continues to dominate the market with forecast share to new supply of around 70%-80%, pointing out that Hanoi market is end-users-oriented.
However, products from some township developments have started to draw attention from local investors. While the urban districts are getting more and more crowded, it is expected that residential supply will move further and further away from the 10km radius of the central business district (CBD).
Township developments will be the major source of supply providing advantages in terms of integrated amenities and product diversifications. Given the improving infrastructure and recent partnership among major corporations, it is expected that these projects will draw more market attention in upcoming years, CBRE predicted.
Landed property posts high rate of sold units in H1
Approximately 2,980 units of landed property were sold during the H1, posting an increase of 14% compared to the total number of sold units recorded in the whole 2018.
The number of newly-launched units reached 3,241 in H1, a remarkable figure for new supply of Hanoi’s landed property market thanks to a strong Q1.
Sales achieved impressive performance during Q2, indicating the improving market sentiments for landed residential properties in Hanoi.
Improving inner-city linkage continues to foster the expansion of Hanoi landed property supply to emerging locations. Indeed, there has been a major shift of new supply in terms of location, with the East now accounting for approximately 80% of total new launch during the six-month period.
While total supply remains predominantly captured by the West, movements further from the core districts to more suburban areas are being clearly witnessed thanks to better infrastructure in non-traditional areas and revitalization.
Progress has been seen at certain projects to the West of Hanoi, with developers announcing their plans to complete undone constructions and fully deliver high-quality residential developments. Upon the relaunching of such projects, it expects to welcome greater expansion of the supply for landed property in Hanoi, the real estate brokerage firm said.
CBRE condominium ranking criteria
Luxury: projects that have primary prices over US$4,000/sq.m
High-end: projects that have primary prices around US$2,000/sq.m - US$4,000/sq.m
Mid-end: projects that have primary prices from US$1,000/sq.m to US$2,000/sq.m
Affordable: projects that have primary prices under US$1,000/sq.m
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During Q2, only two high-end projects opened to the market which is from Tay Ho district.
Sales momentum of the overall market were relatively positive in Q2 with more than 40% of units launched during the quarter having been absorbed. In total, about 6,900 units were sold during the quarter, up 17% on year.
Active sales activities and good construction progress from both townships and standalone projects have contributed to overall positive sales performance during H1, CBRE said in the report.
Hanoi's condominium market in Q2/2019. Photo: CBRE
|
In terms of pricing, selling prices in the primary market in Q2 averaged US$1,337 per square (sq.m), an increase of 4% on year.
Noticeably, high-end segment recorded an average pricing level of US$2,345/sq.m – the highest pricing level of this segment observed over the past five years.
Moving forward, the level of new supply is expected to stay at above 33,000 units in 2019 – a relatively similar volume as seen during 2016-2018 period.
Meanwhile, the mid-end segment continues to dominate the market with forecast share to new supply of around 70%-80%, pointing out that Hanoi market is end-users-oriented.
However, products from some township developments have started to draw attention from local investors. While the urban districts are getting more and more crowded, it is expected that residential supply will move further and further away from the 10km radius of the central business district (CBD).
Township developments will be the major source of supply providing advantages in terms of integrated amenities and product diversifications. Given the improving infrastructure and recent partnership among major corporations, it is expected that these projects will draw more market attention in upcoming years, CBRE predicted.
Landed property posts high rate of sold units in H1
Landed property in Hanoi in H1/2019. Photo: CBRE
|
The number of newly-launched units reached 3,241 in H1, a remarkable figure for new supply of Hanoi’s landed property market thanks to a strong Q1.
Sales achieved impressive performance during Q2, indicating the improving market sentiments for landed residential properties in Hanoi.
Improving inner-city linkage continues to foster the expansion of Hanoi landed property supply to emerging locations. Indeed, there has been a major shift of new supply in terms of location, with the East now accounting for approximately 80% of total new launch during the six-month period.
While total supply remains predominantly captured by the West, movements further from the core districts to more suburban areas are being clearly witnessed thanks to better infrastructure in non-traditional areas and revitalization.
Progress has been seen at certain projects to the West of Hanoi, with developers announcing their plans to complete undone constructions and fully deliver high-quality residential developments. Upon the relaunching of such projects, it expects to welcome greater expansion of the supply for landed property in Hanoi, the real estate brokerage firm said.
CBRE condominium ranking criteria
Luxury: projects that have primary prices over US$4,000/sq.m
High-end: projects that have primary prices around US$2,000/sq.m - US$4,000/sq.m
Mid-end: projects that have primary prices from US$1,000/sq.m to US$2,000/sq.m
Affordable: projects that have primary prices under US$1,000/sq.m
