Regarding secondary prices for townhouses, the market observed relatively small changes when the average price reached 4,557 USD/m2. Meanwhile, the average villa price in the secondary market reached US $ 4,075/m2.
According to CBRE research, in the first half of 2019, the market recorded impressive figures for the new supply of the land-attached housing market in Hanoi was 3,241 units for sale, mainly contributed to the supply in the first quarter. The number of new launches in the first 6 months was 1.5 times higher than the total supply in 2018, showing an increasingly vibrant market picture as well as promising market prospects.
According to CBRE's assessment, the improvement of inner city transport continues to promote the expansion of the land-attached housing supply in Hanoi to new locations. There was a big change in the allocation of new supply as the Eastern region accounted for about 80% of total new launches in the first 6 months.
The CBRE report also noted a shift in supply from the central districts to the suburbs. The development infrastructure not only facilitates the opening of new projects in new areas, but also helps revive projects that have previously faced a stagnant construction schedule.
A number of projects in the western area of Hanoi have witnessed positive changes, when the developers informed of the completion of the unfinished works so that they could fully deliver high-quality projects. Thanks to the reselling of unfinished projects, CBRE believes that the market will continue to receive a wider shift of new supply in the land-attached housing market in Hanoi.
According to CBRE, the quarterly sales were also impressive despite the increase in new supply, showing that villa and townhouse products have been well received by the market. About 2,980 units were sold in the first 6 months of 2019, 14% higher than the total units sold in 2018.
Regarding market performance, the average villa price in the secondary market reached US $ 4,075/m2 (including VAT and construction costs). In parallel with achieving a positive growth of 3.9% qoq, the selling price also returned to USD 4,000/m2 for the first time in 2 years. This is mainly due to the increase in villa prices in new locations such as Gia Lam, Ha Dong, and Long Bien, which benefit from the growing infrastructure and accession of reputable developers.
Regarding secondary prices for townhouses, the market observed relatively small changes when the average price reached 4,557 USD/m2, an increase of 1.8% compared to the previous quarter. The large gap between secondary prices between two adjacent products and villas is mainly due to smaller townhouse projects that are usually located in inner-city districts while villas are mainly in suburban areas, resulting in a much higher price than the villa type.
According to CBRE's assessment, the formation of large-scale complex cities in recent times has increased product competition among land-attached housing projects. It is predicted that in the remaining months of 2019, high product quality, management uniformity as well as the reputation of investors are still the main factors, greatly affecting the decision of the customers buy to stay and buy to invest.
In 2019, it is expected to receive more new supply in the next quarters with the majority coming from the later phases of projects that have been launched before.
According to Thanh Nga