Hanoi’s property market predicted to rebound strongly

Buildings in Hanoi (Photo: VNA)

Hanoi - Strong construction activities in many different types of property and areas in Hanoi signal the strong recovery of the capital’s real estate market from this year onwards, according to CBRE Hanoi Branch Director Nguyen Hoai An.

At a recent press conference looking back on the Hanoi market in the first quarter, An noted that not only residential real estate but also commercial real estate will welcome many new projects with the participation of foreign investors and domestic developers from the southern region.

A CBRE Vietnam survey showed that approximately 4,400 apartments were launched in Hanoi in Q1, down 39 percent quarter-on-quarter due to the hiatus caused by the Lunar New Year (Tet) holiday and the resurgence of COVID-19, but still up 270 percent year-on-year.

This indicates a strong recovery in the local property market compared to Q1 of 2020, when COVID-19 first broke out in Vietnam.

Do Van Anh, manager of the research and consulting division at CBRE Vietnam, said most of the new apartment supply in Q1 came from 14 projects already opened for sale, while only three projects were newly launched.

She said apartments in the mid-end segment were still the most popular in the market, accounting for up to 80 percent of total new supply in Q1. The eastern and western areas of the city were home to most new projects, with 77 percent of new supply.

The positive market sentiment in recent times has also helped bridge the gap between the number of newly-launched apartments and those already sold.

A total of 4,200 apartments were sold in Q1. In the mid-end segment, the number of sold apartments was higher than newly-launched apartments.

Anh forecast that new supply and sales in Hanoi this year will be around 24,000-26,000 apartments. Many residential real estate projects will be launched for sale in different parts of the city, both inner and outlying districts, in coming quarters, helping the market become more vibrant.