Hà Nội's condo price continues to increase in Q3
Hà Nội's condo price continues to increase in Q3
Limited supply over many years has increased purchasing power in the property market, while also pushing up primary prices rapidly, according to CBRE Việt Nam's report on Hà Nội's market in the third quarter released on Tuesday.
Nguyễn Hoài An, Senior Director of CBRE Vietnam Hanoi Branch, presents the report on Hà Nội's property market in the third quarter. —VNS Photo Hoàng Hà |
In the primary market, the average selling price of condominiums in Hà Nội reached VNĐ64 million per sq.m (excluding VAT and maintenance fees), only three per cent lower than the current average price in HCM City. The selling price increased by 8.7 per cent quarter-on- quarter and by 26 per cent year-on-year.
Supplies of new condominium can also be offered at high prices because many are in projects of good quality, located in urban zones with full amenities and conveniently connecting to the central area of Hà Nội and areas with concentrated offices and commercial services.
In the secondary market, the average selling price continued to increase by 5.5 per cent quarter-on-quarter and nearly 26 per cent year-on-year to VNĐ46 million per sq.m (excluding VAT and maintenance fees).
The Hà Nội condo property market is not showing any signs of slowing, with prices currently only about VNĐ2 million per sq.m lower than those in HCM City.
In this quarter, condominium projects that were completed and handed over some time ago recorded the highest secondary price increase, because they are located in areas with densely populated communities that offer many amenities and services.
The liquidity of the Hà Nội condominium market in the third quarter was also one of the bright spots. Although the new supply of condominiums was relatively large, the market's purchasing power remained very positive.
Total sales in the quarter exceeded 8,000 condominiums, down 20 per cent from the previous quarter due to many projects opening for sale simultaneously in Q2 and Q3, but this figure was still more than double that of the same period last year.
Projects located in the eastern and western areas continued to demonstrate strong appeal to homebuyers, with a sales rate of over 90 per cent recorded in the first quarter. Grasping the positive market sentiment, many investors have quickly accelerated the progress of project sales.
Some projects that sold out their products in the third quarter have already received bookings for their next buildings, while other companies are also accelerating their efforts to launch new supplies this year instead of next year.
Nguyễn Hoài An, Senior Director of CBRE Vietnam Hanoi Branch, said: "2024 seems to mark the end the cycle of housing supply scarcity in Hà Nội over the past four years, with the total supply in 2024 expected to reach nearly 30,000 condominiums.
"Positive purchasing power, combined with quality projects developed by experienced investors, will be the premise for stronger market development over the next one to two years."
In the third quarter 2024, the Hà Nội real estate market saw the largest total new supply of condominiums in the past five years. Supply comes mainly from 11 projects developed in the metropolitan areas of the west and east.
The new condo supply in Hà Nội apartment market in the third quarter consisted of about 8,230 units, nearly equal to the new supply of the previous quarter.
In the first nine months of 2024, the total new supply of condos in Hà Nội reached more than 19,000 units, exceeding the total supply for the whole year of 2023.
Of these, five projects launched their condos for the first time, mostly located in Nam Từ Liêm, Tây Hồ and Gia Lâm districts (Hà Nội) and Văn Giang district (Hưng Yên Province bordering Hà Nội).
CBRE noted that more than 75 per cent of the total new supply came from high-end apartment projects. Of these, only two projects had an offer price of around VNĐ50-60 million per sq.m. The remaining projects all recorded an average primary price of over VNĐ60 million/m2 (excluding VAT and maintenance fees).
In the last quarter of 2024, new supply is forecast to exceed 10,000 condos, bringing the total number of newly launched condos in 2024 to nearly 30,000 units, about three times higher than the new launches for sale in 2023, and the highest supply in the past five years. A large proportion of the supply is expected to come mainly from the high-end segment.
Meanwhile, more luxury projects are expected to be launched for sale at the end of this year, continuing to push up the primary selling price in the last quarter of the year.
In addition, secondary prices will continue to increase in the context of abundant primary supply, but with a more stable rate of increase.
