When the land fund in the West of Hanoi 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 the investment.
33,000 apartments have been offered for sale this year
The real estate market report for the second quarter of 2019 of CBRE - a unit specializing in real estate research and consultancy shows that in the first 6 months of this year, the Hanoi real estate market recorded 17,700 new apartments for sale. In particular, in Q2, there were 6,400 apartments for sale; The mid-end and affordable segments dominated the market, accounting for approximately 98% of total new launches in the quarter. In the high-end apartment segment, there are only 2 new projects, located in Tay Ho district.
According to CBRE's forecast, from now until the end of 2019, Hanoi's apartment price will remain stable as in the first months of the year...
Along with that, the sales were quite positive with over 40% of new supply and sales were sold in the second quarter. Specifically, there were 6,900 units sold, which increased 17% over the same period. Notably, active sales and positive construction progress from urban projects and individual housing projects have contributed to positive sales in the second half of 2019.
Regarding the selling price, the average selling price on the primary market in the second quarter was recorded by CBRE at 1,337 USD/m2, increasing 4% year on year; But if comparing the same basket of projects by year, the primary price only increased slightly by 1%. Notably, the high-end segment has an average price of up to 2,345 USD/m2 - the highest price in this segment within the past 5 years.
CBRE also forecasts that new supply in 2019 is expected to be over 33,000 apartments and the mid-end segment continues to lead the market, accounting for approximately 70-80% of the total new supply and launch. This shows that the Hanoi market is still targeting the segment of buyers to stay. Besides, recent urban products also attract a part of domestic investors.
Meanwhile, due to the urban districts becoming more crowded, the housing supply is expected to gradually move away from a radius of 10 km from the center of Hanoi.
Condominium public high prices?
Talking with Infonet reporter about the prospect of the real estate market in general and the apartment market in particular from now to the end of the year in Hanoi, Ms. Nguyen Hoai An - Director of CBRE Hanoi said, with the apartment market, households and infrastructure are among the influencing factors.
“Forecasting for the last months of 2019, apartment prices will remain stable as in the first months of the year. However, it is possible that the project in a prime location will have a relatively high asking price because there is not much land available to carry out those location projects” Ms. An said.
Answering questions of Infonet related to which areas of Hanoi will attract investors next time? Ms. An said: In the past 10 years, Hanoi has focused on developing in the West and has now grown very fast; Recently the movement is heading to the south and somewhat to the east of Hanoi.
“There are already beginning to see other areas within a radius of 10km north of the Red River - this is less developed than other areas of Hanoi; But due to its proximity to Noi Bai International Airport, the north of Hanoi is also a potential area for both housing and logistics. When the West land fund is exhausted, the South is currently very high density, the East is gradually having large projects being exploited, investors are looking to the North and calculating investment. We expect the northern area of Hanoi in the next few years will also be an active location with new projects” An added.
Regarding the recent "hot" land, Ms. An said that this is a characteristic of the developing market and the information is not transparent. Recently this phenomenon only occurred locally and happened in a short period of time. The future will still have such phenomena when there is information about new infrastructure being implemented, or new projects being 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... will also cause investors excitement in the surrounding areas", Ms. An for example.
According to Minh Thu