According to the Ministry of Construction, the housing and real estate market in the first 6 months of 2019 is generally stable, some segments increased slightly but no price fluctuations. A number of real estate projects - especially in Hanoi and Ho Chi Minh City are "stuck" leading to a decrease in supply and the market is still somewhat quiet.
Apartments for sale: need utilities
According to the Ministry of Construction, in the two major urban areas of Hanoi in the second quarter of 2019, the price of apartments increased by 0.16% compared to the first quarter, in which the high-end apartment segment decreased by about 0.13%, mid-end apartments increased by 0.33%, affordable apartments increased by 0.27%, individual houses price increased by 0.96%.
While in Ho Chi Minh City, in the second quarter, the price of apartments increased by 0.62% compared to the first quarter, of which high-end apartments increased by 0.67%, mid-priced apartments increased by 0.63%, affordable apartments increased by 0.55%, individual houses price increased by 2.7%.
The Hanoi market report of CBRE Vietnam showed that, in the first 6 months, there were 17,700 new apartments for sale. New supply in 2019 is expected to fall to about 33,000 units - the equivalent of the period 2016 - 2018, mainly from big projects such as Vinhomes Ocean Park, Vinhomes Smart City...
According to CBRE, while inner-city districts are becoming more crowded, the supply of housing is expected to gradually move away from the existing central area of 10 km, of which the west and east more potentially increase price. Notably, urban projects will focus on the main supply to bring synchronized utilities and diverse products. CBRE mentioned a remarkable point: if previously the investor often sold a project to build a house and then built it as a utility, many investors now used it as a utility first to attract customers to the project.
At the same time, Savills released a Hanoi market report of apartment segment for sale with a certain calm. New supply was added 6,600 units, down 32%, 33% QoQ and YoY respectively. Total units sold decreased 3% QoQ but increased sharply 27% YoY. In particular, Grade B leads when it accounts for 71% of supply, followed by Grade C with 28%. Savills forecasts that approximately 30,000 apartments will be offered for sale in the second half of the year.
Where will the attract?
Do Thu Hang, Head of Savills Hanoi Research Department, commented that big real estate and infrastructure projects are having a great impact on the investment situation in Hanoi areas. For example, Lotte Mall West Lake project helped raise the region's high level. Similarly, Aon Mall, when put into operation, will add value to Ha Dong area; Although F1 race has just been started, it is improving for projects in the west of the city; Meanwhile, the Smart City project or Vinh Tuy Bridge phase 2 will contribute significantly to the northern and southern areas of Hanoi.
Regarding the prospect of the market from now to the end of the year in Hanoi, Ms. Nguyen Hoai An - Director of CBRE Hanoi said: Forecasting the last months of 2019, apartment prices will remain stable. Which areas of Hanoi will attract investors next time? According to Ms. An, in the past 10 years, Hanoi has focused on developing in the west and is now developing very fast. There is currently a shift towards the south and somewhat to the east of Hanoi.
“When the west land fund is exhausted, the south is currently very high in density, the east is gradually having big projects being exploited, investors are looking to the north and calculating investment. We expect the area north of Hanoi in the next few years will also be an active location with new projects” An added. "Projects in prime locations will have relatively high asking prices because there is not much land available for these location projects." - Ms. An assessed
Regarding the recent "hot land", Ms. An said that this is a characteristic of the developing market, the information is not transparent. This phenomenon only happens locally and occurs in a short time. The future will still have such phenomena when there is information about new infrastructure being implemented, or new projects implemented by large investors.
"For example, in Hanoi a number of infrastructure projects have been announced such as Metro Line 3 connecting Hanoi Station to Yen So or the new Vinh Tuy Bridge will be built, which may make investors inspired by the surrounding areas" said Ms. An.
According to Ngoc Mai