Real estate market report for the second quarter of 2019

In the second quarter of 2019, apartment supply plummeted in both major markets, Ho Chi Minh City and Hanoi.


HCMC apartment market


As forecasted earlier, the apartment market in Ho Chi Minh City in the second quarter of 2019 continued to be quiet with the supply decreased sharply compared to the same period last year.


Specifically, in the second quarter of 2019, Ho Chi Minh City market has about 4,900 apartments launched for sale from 16 projects, most of which came from previously opened projects to open for the next sale. The supply of apartments in the second quarter decreased by 30% compared to the same period in 2019 but increased by 4.7% compared to the first quarter of 2019. As at the time of the first quarter, the legal procedures were delayed as well as the investor changed the sale plan, resulting in a new limited supply. The supply of apartments in the quarter came from the projects of Alpha Hill (District 1), Diamond Brilliant (Tan Phu), The Signial (District 7),...


Generally in the first 6 months of 2019, Ho Chi Minh City apartment market has 9,590 apartments offered for sale, down 36.7% compared to the first 6 months of 2018.


The average primary price of the whole market in the first half of 2019 reached VND 58.5 million per m2, a sharp increase over the same period because of the appearance of projects with outstanding selling prices, from over VND 160 million to more than 256 million dong per m2. The average selling price in the apartment segment increased not only because of the appearance of projects with superior selling prices but the scarcity of goods pushed up the price of houses, raising the average market price to a new higher level than before.


District 2, District 7, District 9 and Thu Duc are still the areas with large supply of apartments in the quarter. In the future, the supply of apartments in the East is expected to increase strongly thanks to the appearance of large-scale projects.


In the last 2 quarters of 2019, the supply of apartments is forecast to increase compared to the first half of the year, but the tightening policies related to approving and licensing projects will significantly affect the future supply. Supply in 2019 is expected to decrease compared to previous years.


In the second half of this year, Ho Chi Minh City apartment market is expected to receive large supply from Vinhome Grand Park projects (District 9 - former name Vincity Grand Park), Akari City, AIO City (Binh Tan), next period of Eco Green Saigon, Sunshine City Saigon (District 7),...


Ho Chi Minh City villa market


The number of newly launched terraced houses in Q2/2019 reached 273 units, showing that the supply is increasingly limited, down 37% compared to the previous quarter. Also the supply is limited, the development in the villa and townhouse segment has not changed much over the quarters. Most of the townhouse villas projects for sale are coming from small-scale projects or small quantities are launched from the next phase of large-scale projects.


Similarly in the condominium segment, the limited supply in the residential real estate market came from delays in the process of obtaining a building permit and the preparation of necessary procedures to qualify the owners for opening and sale of investors. Townhouses are still a popular segment, so demand is still high, resulting from both demand for accommodation and rental.


Hanoi apartment market


In the second quarter of 2019, Hanoi market had nearly 4,400 apartments from 12 projects offered for sale, mainly coming from the next phases of existing projects, less than half compared to the first quarter of 2019. Some projects launched in this quarter include: Vinhomes Smart City, Imperia Sky Garden (Sky View Building), The Zei, UDIC Westlake,...


Generally in the first 6 months of 2019, Hanoi market had nearly 17,500 apartments launched, up 30% and 37% respectively over the same period in 2017 and 2018.


By region, Tay Ho, Nam Tu Liem and Gia Lam are the places with large apartment supply in Q2/2019 with 58% of supply in the quarter.
By segment, mid-end and affordable apartments dominated the market with approximately 88% of total supply launched in the quarter. The high-end segment accounts for nearly 22% of the remaining supply.


The average primary price of the whole Hanoi apartment market in the first half of 2019 reached VND 33.4 million per m2, up 11% compared to the second quarter of 2018.


It is expected that in the second half of 2019, about 30,000 apartments will be launched for sale in Hanoi market, with the mid-end segment continuing to lead the market. The market will still receive large quantities of supply from large-scale urban areas, not only targeting buyers to stay but these projects also attract quite a lot of investors. Some projects will contribute to the supply of apartments in Hanoi in the remaining months of 2019 such as 2 projects Vinhomes Smart City (Nam Tu Liem) and Vinhomes Ocean Park (Gia Lam) of Vingroup, The Terra - An Hung (Ha Dong) by Van Phu - Invest.


According to CafeLand