Hanoi apartment sales robust in first quarter: JLL
The Hanoi apartment market was strong in Q1 with the number of transactions rising by 65 percent against Q4 2018, according to JLL.
A new report by the real estate consultancy said sales topped 13,600 units in the first quarter.
The affordable segment saw absorption of 76 percent, nearly double that of the last quarter of 2018, with most of sales being of units in recently completed projects or those in progress.
The demand to buy apartments to live in them remained positive for the market, while the demand to buy for investment has been falling in recent quarters, JLL said.
"Developers have also been offering more affordable products by reducing the of apartments to target young families."
A recent report by property services firm CBRE also noted that the apartment market in Q1 recorded one of the highest open sales quarters despite the long Lunar New Year or Tet holiday in February.
JLL said during the quarter nearly 11,500 new units hit the market, an increase of 24.7 percent compared with Q4 2018, the highest in the last five years.
The average price excluding that of new supply increased by only 1 percent in the primary market, according to this firm.
The high-end segment with an increase of 5.2 percent in sales was one of the best growth markets in the quarter amid limited supply and increasing demand from foreign customers. In this segment, rising prices were seen in projects with good construction quality and convenient locations.
"New supply is expected to reach 10,000-12,000 units per quarter through 2019 with the affordable segment leading the market.
"The number of apartments for sale is expected to increase in the western and northern areas thanks to consistent improvement in infrastructure. The prices will continue to go up but at a slow pace in the next quarters," JLL added.
CBRE also said the mid-priced segment would continue to lead the market, predicting it would comprise 65 -70 percent of total new supply, which indicates the Hanoi market still targets buyers who buy for residential purposes.
Its report said: "Sales, therefore, are expected to reach 28,000–30,000 units in 2019. Regarding primary prices, the average price level in 2019 is expected to be only 1-2 percent higher than in 2018 due to the mid-priced and affordable segments making up a high proportion of the new supply."