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Hanoi sees strong recovery of property market in Q1

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There were approximately 4,400 condominium units launched in Hanoi in the first quarter of this year, up 270 per cent year-on-year, according to CBRE Vietnam. VIET NAM NEWS

Hanoi sees strong recovery of property market in Q1

The Hanoi property market is expected to recover strongly this year thanks to positive performance in the housing segment in the first quarter (Q1), according to experts.

CBRE Vietnam’s survey in Q1 2021 revealed there were approximately 4,400 condominium units launched in Hanoi, up 270 per cent year-on-year but down 39 per cent from the previous quarter due to the disruption of the Tet holiday and a new wave of Covid-19 in Vietnam.

The yearly growth showed a strong recovery from Q1 2020 when the first wave of the Covid-19 pandemic started in Vietnam, said Do Van Anh, manager of the research and consulting division at CBRE Vietnam.

Most of the new supply during the quarter came from follow-on launches (14 projects) and there were only three brand new projects introduced to the market.

The mid-end segment continued to be the most popular with 80 per cent of total new launches. In terms of location, the east and the west of the city were the major sources of new projects, contributing 77 per cent of new launches, Anh said.

Moderate new supply during the quarter helped close the gap between newly launched and sold units. A total of 4,200 units were sold during the quarter, of which, the affordable segment recorded more units sold than launched.

In Q1, the average primary price in the Hanoi market was recorded at $1,461 per sqm (net of VAT and maintenance fee), up by seven per cent yearon-year and three per cent quarter-on-quarter, according to the survey.

The mid-end segment continued to dominate the Hanoi condominium market, while stock in other segments was not abundantly available. Due to the launches of new projects at attractive locations, the average primary prices of highend and affordable segments increased by nine per cent and five per cent quarter-on-quarter, respectively.

On the secondary market, some of the recently completed high-end projects in developed residential areas such as Ba Dinh, CauGiay and Nam TuLiem districts recorded annual pricing growth of threeto-seven per cent. The average secondary pricing of those districts (including long-time completed projects) only increased by one-to-three per cent year-on-year.

In addition, projects close to nearly completed infrastructure projects such as along the ongoing constructed elevated Ring Road No 2 and areas under recently approved or pending approval master plans such as Long Bien district experienced a pricing growth of fiveto-nine per cent year-on-year, according to CBRE Vietnam.

Savills Hanoi director Matthew Powell said: “There has been a fairly reasonable price increase certainly in Hanoi, with the price of Grade A and Great B sector only up to around five per cent year-onyear. So that’s a reasonable growth rate. And I think it is an indicator of the recovery in Vietnam’s economy.”

Nguyen Hoai An, director of CBRE Vietnam’s Hanoi branch said: “The active construction across sectors and locations of Hanoi signals a strong bounce-back of the city real estate market. We expect not only the residential sector but also the commercial sector will welcome additional projects involving international players and local players coming from southern Vietnam.”

Moving forwards, the level of the new launch and sold units are expected to hover around 24,000-26,000 units in 2021. In the upcoming quarters, new residential projects and townships are set to be launched in
different areas in Hanoi’s urban and rural districts. In terms of selling prices, the average primary pricing is expected to increase at about four-to-six per cent year-on-year in 2021, according to CBRE Vietnam.

Meanwhile, according to Savills Vietnam’s quarterly report on the Hanoi property market released on April 14, the new supply of 942 dwellings on the Hanoi villa and townhouse market in Q1 2021, up 39 per cent year-on-year, was from four newly launched projects and the next phases of three existing projects.

The primary supply of 1,979 dwellings was up 28 per cent 47 per cent year-on-year and Hoai Duc district led with a 37 per cent share.

Performance on the villa and townhouse segment in Q1 improved to 934 sales, up 232 per cent year-on-year. Hoai Duc district also led here with a 56 per cent share.

Savills Hanoi’s Powell said: “Landed property continued to attract strong buyer attention despite the pandemic’s effects. New supply was mostly in the west with its abundant land and improving infrastructure.”

In 2021, approximately 3,600 dwellings from 16 projects will enter the market, with most in Hoai Duc and Dan Phuong districts. Western areas with abundant land and improving infrastructure will continue to perform well.

VIET NAM NEWS/ASIA NEWS NETWORK

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