The Eastern region accounts for 80% of Hanoi real estate supply

Illustration. (Source: VTTXVN)

The eastern area of Hanoi, which accounts for 80% of real estate supply, is the information given by CBRE Vietnam Co., Ltd. at the review meeting of the real estate market in the first 6 months and the future trend.

Experts from CBRE shared that, in the first half of 2019, there was an impressive figure for the new supply of the land-attached housing market in Hanoi when it received 3,241 units for sale.

The product was mainly contributed by new supply in the first quarter of 2019. The number of new launched in the first two quarters of 2019 was nearly 1.5 times higher than the total supply of the whole year of 2018. This showed that the market picture was quite vibrant and good prospects in following time.

The analysis showed that the improvement of inner city transport continues to spur supply expansion in new locations. Notably, there has been a big change in the allocation of locations in new supply and the Eastern region rose to lead when accounting for 80% of total new launches in the first months of the year.

The movement of supply from major districts to suburban areas was becoming increasingly clear. Better infrastructure not only facilitated the opening of new projects in new areas, but also helped revive a number of projects that previously faced sluggish construction progress.

Accordingly, some projects in the West of Hanoi witnessed positive changes when investors announced the completion of unfinished works to be able to fully deliver products with high quality.

Besides, the sales in the past 2 quarters were also quite impressive despite the new supply increased. Statistics from CBRE show that villas and townhouses were positively received by the market with approximately 2,980 units sold, 14% higher than the total units sold in 2018.

The average villa price in the secondary market was about USD 4,075/m2 including VAT and construction costs. This price was mainly in new locations such as Gia Lam, Long Bien, and Ha Dong, which were areas that benefit from developed infrastructure and come from reputable developers. The formation of large-scale complex cities in recent times has intensified product competition among land-attached housing projects.

CBRE predicts that in the remaining months of 2019, high product quality, uniform management, investment reputation were still the main factors that influence the decision either to buy to live or invest of cutomer.

In 2019, it is expected to receive more new supply in the coming quarters with the majority of products coming from the later phases of the project that have been launched for sale.