Hanoi continues to scarce new supply of luxury apartments in the last months of the year

According to JLL, the SBV's tightening of high-end real estate credit along with the limited land bank in the central area has led to a shortage of high-end and luxury segments in the next few years.

A recent JLL real estate market report said that after a period of strong growth, the supply from newly launched projects tended to slow down. The number of launches in Q2/19 reached 5,900 units, nearly half of the previous quarter's supply, mainly from the next phases of existing projects. This is the lowest level recorded since the market recovered in 2014. The majority of newly launched projects are small scale with a total of less than 500 apartments. According to JLL, this new supply shortage will continue from now until the end of the year.

The selling price per project remained stable or increased slightly after a period of strong growth. Average market price excluding new projects in the quarter increased by 0.5% QoQ and 6.9% YoY, In order to attract buyers, in the context of increasingly tightening lending policies, investors Since the company has maintained a stable price, many preferential sales policies have been applied to accelerate inventory. The applied policies include extending the installment period, cash discount from 3% to 6% for customers who do not use the loan package.

The new supply is expected to reach 10,000-15,000 units in the remaining two quarters of 2019, the new supply will continue towards the Affordable and Mid-end product segments aimed at housing demand. Tightening high-end real estate credit along with tight land bank in the CBD resulted in the lack of supply of the Luxury segment in the next few years. The volume of transactions in the market in the coming time may be affected by buyers who tend to be more cautious and selective in the absence of loan support packages and a slowing economy.

Regarding the transaction, the number of sold apartments reached over 4,660 units, 65.3% lower than the previous quarter. Investment demand was cooled in Q2.19 after a period of strong growth. Increasing interest rates and being more prudent in the process of loan application processing by banks make it more difficult for home borrowers. However, the demand for accommodation in the Affordable and Mid-end segments remains good.

According to JLL's assessment, the apartment is about to be completed and smart apartments are quite attractive in the market recently, the sales rate of this type of product tends to be higher than ordinary apartments.

Actual observations show that currently the projects that are open for sale and are interested in the market are mainly projects launched from previous years preparing to hand over. In the smart apartment segment, Sunshine City is invested by Sunshine Group, this is one of the smart apartment projects attracting customers in the West Lake area.

For the apartment is being completed, the current investors use services and utilities to attract customers. Recently, at the launching ceremony of Dreamland Bonanza service and apartment project, located at 23 Duy Tan Street, to attract guests Vinaland & BIC Vietnam offers a wide range of high-end free utilities. For residents such as smart indoor pool, GYM gym, 3D golf area, children's playground, walking garden... Especially, in the project of interior equipment, the investor has been equipped with thorough and complete from the dryer body, shower, basin faucet Brand Bravat German technology to the heater when taking a winter shower. In particular, the apartment will be free wifi transmitter.

In addition to attracting customers with available utilities, many projects are starting to have unique tactics to entice home buyers with various forms such as Stellar Garden project (Thanh Xuan) to install more. escape ladder system in the balcony area when a fire occurs, some high-end apartment projects are committed to buying apartments for customers with interest rates up to 10-15%.

According to JLL and many research units in the market, although the new supply in the apartment market in Hanoi is scarce, the competitiveness in the market is still very large because the inventory of apartments is still at Therefore, investors continue to offer discount policies, promotions and improve utilities to attract buyers.

According to Nam Anh