2017 apartment sales break record
2017 apartment sales break record
2017 witnessed an increasing number of apartments for sale both in general and in the secondary segment (particularly in Hanoi), as reported by commercial property and real estate services firm CBRE.
Apartment market
The fourth quarter of 2017 was the most active time on the apartment market. There were 9,500 new apartments launched in the last quarter, raising the total number to 35,059 throughout the year, up 16 per cent against 2016. This is the highest figure in the past five years.
Supply comes from almost all districts of Hanoi. It is the first time two new projects have been launched in Dong Anh district, while Western Hanoi is still the largest market with 23 projects, followed by Thanh Xuan, Hoang Mai, and Hadong districts.
The secondary and primary segments accounted for around 80 per cent of the total new apartment supply in 2017. This year also witnessed a record in the number of new apartments completed. The average number of new apartments completed in the 2012-2016 period was 19,200 units per year in Hanoi, while it was 35,700 in 2017. There were 91 new projects in 2017, while in 2014 the figure was 33.
Revenue from apartment sales was also better, with 23,000 successful transactions in 2017, up 12 per cent compared to 2016. Various new projects, which were not in prime locations but were invested in for design, development, and comfortable services, sold at a high rate of 70 per cent in the first quarter.
Due to abundant supply and the shift of the real estate market to the secondary and primary segments, the average primary price was about $1,344 per square metre, down 2.4 per cent on-year.
In the coming time, CBRE forecasted the evolvement of the residential market, with particular stress on the apartment market. Foreigners will take part in this market as investors and buyers alike. Locations at the city centre and near stations will be in higher demand in the next years.
“In 2018 we expect to see clearer distinctions between market segments with the emergence of premium projects in the city centre. Thereby, investors in the primary and secondary segments should improve the quality of their products to remain competitive,” said Nguyen Hoai An, deputy director of CBRE Vietnam.
Landed property market
In the fourth quarter of 2017, the landed property market opened 444 units, 73 per cent of which were semi-detached houses. There were four new projects, including Lakeside Splendora (BT5) in Hoai Duc district, Athena Fulland Dai Kim in Hoang Mai district, and two others in Long Bien district.
Generally in 2017, as many as 4,178 units of villas, semi-detached houses, and shophouses opened for sale in Hanoi. Supply from the Western and Southern area was ample, capturing 72 per cent of total new supply.
At the end of 2017, the average primary price of villas and semi-detached houses was $3,600 per sq.m, while the average secondary price was $3,778, a light increase on-year.
The first quarter of 2018 is expected to be a busy time for villas and semi-detached houses. Many large-scale projects will be released for sale, including Phase 2 of Starlake, Dahlia Homes in Gamuda Gardens, and Him Lam Shophouse.
The real estate market is expected to expand to Eastern Hanoi as several bridges crossing the Red River will be built to improve transportation and infrastructure, making the area more attractive to investors and buyers alike.
