CBRE: The segment of houses attached to land creates a phenomenon in the Hanoi real estate market

CBRE has just announced the focus of the Hanoi real estate market in the second quarter of 2019 and the first 6 months, in which the land-attached housing segment was mentioned as a phenomenon in Hanoi market.

Hanoi market saw a boom in the first half of the year for both apartments and terraced houses. Photo: Thanh Nguyen

The house immediately came out with large number

In the land-attached housing segment, the first half of 2019 the market received 3,241 units launched (mainly in the first quarter). This offering was more than 1.5 times the total supply in 2018.

Along with a surge in sales, this market liquidity is also very good. There were 2,980 units sold in 6 months, 14% higher than the total units sold in 2018.

The average villa price in the secondary market in the second quarter of 2019 reached 4,075 USD/m2 (including VAT and construction costs), which was seen as an increase of 3.9% compared to the first quarter. The price returned to the landmark from 4,000 USD/m2 thanks to on price increases of villas in areas such as Gia Lam, Long Bien and Ha Dong. These are areas with much improved transport infrastructure and reputable developers.

The Eastern area dominates new supply, as up to 80% of new supply comes from this market. Overall, the Western area still dominates in the total supply of residential housing segment attached to land.

Open record sale apartment

According to CBRE, in the first 6 months, the Capital market recorded a large supply, reaching 17,700 new launches. This is one of the first half of the year with record sales. In particular, the second quarter accounted for 6,400 units.

Notably, the mid-end and affordable segments suddenly dominated the market with 98% of total supply. The supply is large, but the liquidity is also very good. Over 40% of new supply has been sold. In the second quarter alone, 6,900 units were sold, increasing 17% year on year.

Regarding selling price, the average price of primary market is 1,337 USD/m2, increasing 4% year on year. With the high-end segment, the average price is 2,345 USD/m2, the highest in the last 5 years, CBRE forecasts, there will be 33,000 new apartments will be launched for sale in 2019, equal to the period from 2016 - 2018.

According to Thanh Nguyen