House price indexes in Hanoi and Ho Chi Minh City both increased

According to Savills, the housing price index in Hanoi increased by about 1 point quarterly and 3 points per year; In Ho Chi Minh City, the house price index is still stable by quarter.

Savills Vietnam - a real estate research and advisory unit has just announced a real estate price index in May 2019 for two markets, Hanoi and Ho Chi Minh City. Accordingly, in Hanoi, in quarter 1/2019, the housing price index increased by about 1 point QoQ and 3 points YoY, reaching 107.2 points. The total number of units sold increased by 70% year on year but decreased by 14% QoQ. The average absorption rate is 29%, down 3 percentage points quarterly but up 4 percentage points year on year.

According to Savills, a large demand leads to a high number of sold units of Grade B, equivalent to 70% of total transactions and the highest growth in the three segments reached 99% by year.

“About 44,000 apartments from 34 current and future projects will be launched. Gia Lam and Tu Liem districts with fast-growing infrastructure will witness strong competition” Savills said.

In Ho Chi Minh City, in quarter 1/2019, the house price index in Savills reached 95.4 points, stable by quarter and increased by 1 point by year. Total transactions reached 6,900 units, down 37% quarter-on-quarter and 49% year-on-year, due to a long holiday in January and February. The absorption rate reached 52%, down 8 percentage points quarter-on-quarter, but increased 4 points% by year.

According to Savills, apartments in all grades recorded decreased volumes. Grade C apartments continue to occupy a large share of total transactions, with a 58% market share.

Savills forecast, by 2021, more than 163,000 apartments are expected to open for sale. In particular, districts 2 and 9 accounted for 57% of the total future supply.

According to Minh Thu - Infonet