High-class apartments in central Hanoi increased sharply

After many years of operation, high-class apartments are located in the golden land of central districts such as Ba Dinh, Dong Da and Tay Ho with strong price increases. According to experts, in the context of depleted central land fund, scarce supply, high-end projects with prime locations will continue to increase in the future.


Selling prices increased sharply


While the price of high-end apartments in districts such as Ha Dong, Nam Tu Liem and Thanh Xuan stagnated or tended to decrease slightly, high-end apartments in the central area witnessed a strong increase.


2011-2012 period, Ms. H.M. Lan bought Mandarin Garden apartment in Trung Hoa Nhan Chinh for 35 million VND/m2, earlier this year she decided to sell this apartment with a successful transaction price of 52 million VND/m2. Not only Ms Lan's apartment, the apartments of this project all witnessed spectacular price increases. Accordingly, the primary selling price in previous years only reached VND 30-35 million/m2, now the successful offering price ranges from VND 45-55 million/m2.


Similarly, about 5 years ago, Mr. Xuan Nghia bought an apartment at the project Lancaster (Nui Truc, Ba Dinh) with the price of about 50 million VND/m2, the apartments here are successfully traded with the price from VND 67-72 million/m2.


Savills' survey results also show an impressive increase of the central area apartment. Specifically, Hanoi Aqua Central (Ba Dinh) offered for sale in 2017 with the price of 50-92 million VND/m2 now being offered for sale at 60-92 million VND/m2; Sun Grand City Thuy Khe (Tay Ho), the price on the primary market in 2017 is 48-106 million dong/m2 now offering up to 62-118 million dong/m2; Hoang Thanh Tower (Hai Ba Trung), the price increased from 65-75 million VND/m2 in 2011 to 72-102 million VND/m2 in 2019; Golden Weslake (Tay Ho), the price increased from 37-48 million VND/m2 in 2009 to 52-75 million VND/m2. In 2009, Indochina Plaza Hanoi (Cau Giay) was traded at VND37-47 million/m2 now transferred at VND45-58 million/m2. In 2013, Giang Vo D2 has a selling price of 32-38 million VND/m2, has now increased to 39-52 million VND/m2...


After many years of operation, luxury apartments are located in the golden land of the districts such as Ba Dinh, Tay Ho and Cau Giay increased strongly

According to Mr. Duong Duc Hien, Director of Savills Hanoi Housing Division, the number of high-class apartments, meeting grade A standards in the central districts is still likely to increase in the future due to increasingly scarce supply and The land fund here is also exhausted. In addition, Grade A projects are only really capable of increasing the true value after they have been in operation for 2-3 years, based on the criteria of building quality, operational management quality and residents in that building. These factors will form tenants and contribute to creating good rental rates for the project.


In fact, high-end apartments for rent in the central districts have a good price increase, and the transfer market has also set a high price. For example, in Hanoi Aqua Central, the rental price of 3-bedroom apartments is not fully ranging from 25-28 million VND/month, with 3 bedrooms fully furnished, the rent ranges from 45-65 million VND/month. Or at Hoang Thanh Tower, the price of renting 1 bedroom full interior is set at 32-41 million VND/month, the second bedroom is 40-46 million VND/month, the third bed is 48-61 million VND/month. At Golden West Lake, apartment 1 is fully furnished with the rent from 15-19 million VND/month, 2-bedroom apartment is 20-34 million VND/month, 3-bedroom apartment is 32-60 million VND/month.


The serious shortage of new supply


Selling prices and rents for high-end apartments in the central area all set high prices

It is not difficult to realize that high-class projects with strong price increases are located in Hanoi's "golden land" locations of Ba Dinh and Dong Da. In these districts, land fund is almost exhausted, so new supply is extremely scarce. For example, in the above districts, during the first quarter, the whole market only had about 200 apartments launched and the main source came from the old project to sell the next phase such as The Golden Armor, Lieu Giai Tower...


The time of quarter 2/2019, the only bright spot of supply of Grade A apartments in the central area falls into Ba Dinh district. Lancaster project in Nui Truc street (Ba Dinh) officially launched its own and limited apartment fund. It is known that this building has been put into stable operation and leased for lease since 2013. Private apartment fund and this limit are for some shark investors bought many years earlier, then sublease in the form of service apartments. After gaining profits from this form of leasing, in the context of scarce supply, not many licensed projects, the price of central apartments increased, shark investors officially launched their products. The transfer price is expected from USD 3,300/m2, equivalent to about VND 72 million/m2.


According to Mr. Duong Duc Hien, in 2019, high-end housing segment has many positive prospects due to the increasing demand for housing upgrading from better-off households. Besides, the investment demand of foreigners also increased strongly. Many recently launched high-end projects have completed quotas of 30% of foreigners buying houses right in the launch event. Therefore, projects that meet Grade A standards in the CBD will not only have potential for future price increases but also promise high liquidity capabilities.


According to Thuy An – Tuoi tre online