Hanoi property market has strong recovery in Q1

An estimated 3,079 units were purchased during the quarter, which was double the number of sales from Q1 2014. Photo batdongsan

In Q1 2015, the market continued its recovery with the comeback of high-end apartments. Construction of some 4,879 new units has begun among 18 projects, an 82 per cent against the same period in 2014, said Nguyen Hoai An, senior manager at CBRE Viet Nam's Ha Noi branch.

"Notably, five out of 18 projects are for the high-end segment, more than in any single quarter during 2012-14," she said. "The number of new projects for high-end units went up 60 per cent q-o-q and 30 per cent y-o-y."

Despite a long Tet break, sales remained strong during this quarter, An said. An estimated 3,079 units were purchased during the quarter, which was double the number of sales from Q1 2014.

"The share of transactions for high-end apartments increased to 26 per cent of total sales, as compared to 14 per cent in the previous quarter. The mid-end segment remained the highest share of total units sold, while the low-end segment saw a dip in the share of total sales, as compared to last quarter," she said.

In terms of pricing, some projects in good locations near city centres have increased their asking prices. On average, primary prices in high-end and low-end segments increased by 7 per cent and 5 per cent y-o-y, respectively, An said.

"These are mostly projects near city centres and displaying good construction or offered by reputable developers. This price rise is attributed to the scarcity of land in city centres, and hence, projects in or near city centres become highly sought after."

In the near future, the market is expected to welcome a supply of some 13,000 new units for the remainder of 2015, An said. The West and Southwest will see the most number of units, accounting for 64 per cent of the total supply. However, the East and Southeast is seeing construction of attractive residential clusters.

Additionally, sales performance is expected to remain positive for the remainder of the year, with the resurgence of top-tier developers and projects, she said.