Hanoi’s real estate market performed well in the last three months of 2018 with significant growth in all segments including retail space, offices, apartments, and villas, according to a report by Savills Vietnam. 
Part of Hanoi. Photo: Asiantoday
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The national retail sales of goods increased 12% on year to US$145 billion in 2018.
Notably, registered foreign direct investment (FDI) to Hanoi was US$7.5 billion with 29% from Japanese investors in 2018.
Retail space: increase rent in new projects
The stock was approximately 1.4 million square meters (sq.m) in the fourth quarter (Q4), up 3% on quarter and 6% on year after the entry of three shopping centers in the secondary area.
Average ground floor gross rent continued its upward trend, rising 3% on quarter and 17% on year. The retail podium segment had the most improved performance.
Offices: prospects ahead
Stock was unchanged on quarter at nearly 1.7 million sq.m with the stable availability of Grade A supply and two additional buildings of Grade B.
Meanwhile, average gross rent saw a rise of 3% on year. In terms of supply, there will be approximately 500,000 sq.m to be added until 2020. Five Grade A projects are expected to enter the market in 2019.
Apartment: record in supply
The market welcomed as many as 15,100 units from eight new projects and the next phases of 28 projects, up 120% on quarter and on year.
Transactions rose by 81% on quarter and 69% on year whilst the absorption rate increased by 9 percentage points (ppts) on quarter and 5 ppts on year to 34 percent. The average asking price was US$1,370/m², up 3% on quarter and 10% on year. Grade B accounted for 61% of stock, followed by Grade C with 31 percent.
More than 41,300 units from 36 projects, mostly Grade B will be available for the market in 2019.
Visitors in Hanoi. Photo: Tong Cuc Du Lich
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The average room rate (ARR) was up 14% on quarter and unchanged on year. This was largely driven by a rise of 16% on year in the number of international visitors to Hanoi which hit 5.7 million in 2018.
Average revenue of five-star hotels was US$116/room/night, double that of four-star and triple that of three-star facilities.
Hotel stock decreased 1% on quarter and on year due to the withdrawal of one 3-star hotel but three new four- to five-star hotels will supply approximately 480 rooms in 2019.
Villas and townhouses: strong performances
Four new projects and nine new phases supplied nearly 2,350 dwellings during Q4. Transactions increased 21% on year and absorption was 40%, up 3.8 percentage points on year.
Gia Lam district topped the localities with 52% of sales, followed by Dong Anh district and Long Bien urban district with 9% each.
In 2019, projects including Athena Fulland by Vimedimex, Sunshine Wonderland by Sunshine Group, and Vincity Sportia by Vingroup will be open for the market.
Serviced apartment: higher rent
Average monthly rent rose 5% on year to US$25/sq.m with unchanged occupancy. By Q4, total 48 properties provided 4,600 units, the number will be added 1,100 units from nine projects in 2019-2020.
Grade C decreased 14% in supply and 17% in rent during the quarter.
