Compared to the same period last year, the real estate market in the first 6 months of 2019 in Hanoi tended to decrease both in terms of supply and number of transactions. However, a necessary and timely push came along with the expectation to revive the vibrant atmosphere of the high-end apartment market in Hanoi in the third quarter of 2019.
Real estate transactions were gloomy in the first 6 months of 2019
According to statistics of the Vietnam Real Estate Brokerage Association, in the first quarter and quarter 2 of 2019, real estate transactions in both Hanoi and Ho Chi Minh City tended to decrease. In Hanoi in the first quarter of 2019, only 5,206 new products were offered, with 3,200 successful transactions. In Ho Chi Minh City, there were 3,274 products offered and nearly 3,000 successful transactions.
According to economist Vo Tri Thanh, the real estate market tends to decline in the first quarter and it is cyclical. One of the reasons is that this time coincides with the Lunar New Year and Lunar New Year holidays. In addition, because in the first quarter of 2019, management agencies are conducting a review of transaction conditions of real estate projects, so most new projects in Hanoi and Ho Chi Minh City are being waited for the application approval.
Assessment of trends and opportunities for real estate investment in quarter 2/2019, Professor Dang Hung Vo, Former Deputy Minister of Natural Resources and Environment said: "In the second quarter of 2019, the market will not be able to boom but must wait until the third quarter and quarter 4/2019". This statement is quite accurate when it is only nearly 2 weeks before the end of the second quarter but in Hanoi, almost no projects can be opened for sale. Instead, developers shifted to neighboring provinces such as Bac Ninh, Ha Nam, Bac Giang, Hung Yen, etc. Although the real estate market in these areas is quite vibrant, it only focuses on the ground product.
Demand for high-class apartment buildings is not "cooling down".
Contrary to the scarcity of new supply, the need to find apartments of the people of the capital did not decrease. Specifically, according to the report of real estate market in 2018 of Vietnam Real Estate Brokers Association, the absorption rate of apartments for the whole market in Hanoi reached 68.5% (30,701 units/44,788 units).
In particular, the total amount of search for luxury and luxury apartments ranges from 45 to 46%, accounting for the highest percentage of the total number of searches for apartment products. On this basis, the report of Vietnam Real Estate Brokers forecast that in 2019, the segment of luxury apartments will attract investors and customers.
According to Van Phu – Invest