Ha Noi real estate prices increase in second quarter

In Q2/2014, Ha Noi's total apartment supply was approximately 95,800 units from 162 sold projects and 67 active projects.— Photo bizlive

According to a quarterly report released yesterday by Savills Viet Nam Ltd Company, on the Ha Noi property market in Q2, the average primary price was approximately VND41.7 million (US$1,966) per square metre for villas and VND41.5 million ($1,958) per square metre for townhouses.

The highest price was in Tay Ho District at approximately VND105 million ($4,950) per square metre and the lowest was in Quoc Oai, at VND18 million ($850) per square metre.

The average secondary asking price decreased slightly by 0.4 per cent quarter-on-quarter (q-o-q) for villas and 0.3 per cent q-o-q for townhouses.

Meanwhile, the price increased slightly between 1 and 6 per cent in districts where a number of projects were nearly completed, including Cau Giay, Tu Liem, Ha Dong and Hoai Duc.

"Villas/townhouse have faced competition from private, landed houses and apartments that are selling more as they cost less," said Ngo Thi Huong Giang, Senior Manager of Research and Consultancy.

In Q2/2014, the total stock is approximately 29,400 units from 105 projects. The primary stock comprises 16 projects with approximately 1,100 units, with approximately 28,300 units in secondary stock. One new project in Hoang Mai District launched this quarter is providing 35 villas.

Giang said that taking effect June 16th 2014, a Joint Circular No 01/2014/TTLT-NHNN-BXD-BTP-BTNMT was issued to guide the mortgage procedures for future homes. This circular may increase market demand in the future.

Also in the report, Savills said the average primary price was approximately VND28 million ($1,320) per square metre, increasing 15 per cent q-o-q. The prices increased significantly by 8 per cent for Grade B apartments and by 3 per cent for Grade A apartments, but reduced by 7 per cent q-o-q for Grade C.

The average secondary asking price increased in all districts, up 4 per cent q-o-q to approximately VND29 million ($1,368) per square metre. Ba Dinh showed the most significant increase of 5 per cent to VND38 million ($1,792) per square metre.

In Q2/2014, approximately 1,900 units were sold, up 54 per cent q-o-q due to strong sales in Grade B projects. The absorption rate was 14 per cent, increasing by 5 percentage points, q-o-q.

"Projects which were progressing smoothly and had strong developer creditability generated good sales this quarter. Most buyers are end-users who expect real products," Giang said.

In Q2/2014, Ha Noi's total apartment supply was approximately 95,800 units from 162 sold projects and 67 active projects.

The total primary stock decreased by 8 per cent q-o-q to over 13,400 units. Only one new project was launched. However, four Grade C projects were sold and removed from the primary market. The total secondary stock increased by 15 per cent q-o-q to approximately 82,400 units.