Property inventory value reduced

Total value of property inventory nationwide has reduced in the first 11 months of this year, according to the Ministry of Construction.-Photo Xay Dung Gia Lam

Until November 21, total value stood at VND31.84 trillion, VND867 billion lower than the value in the period from the beginning of this year until October 20, and a reduction of VND19 trillion compared to end-2015, the ministry said.

It said property inventory would continue reducing but the fall would be slow, and the inventory would be mainly land at projects located far from city centres without infrastructure.

The ministry also said transactions on Ha Noi’s real estate market in November increased by 3.9 per cent month-on-month to 1,350 units.

Most projects offered in November were mid- and high-grade apartment products, including Eco Green project in Thanh Xuan District, Seasons Avenue project in Ha Dong District, Sunshine Garden project in Hai Ba Trung District, and Parkview Tower and Osaka Complex projects in Hoang Mai District.

Meanwhile, HCM City had 1,330 transactions on its municipal property market in November, a month-on-month increase of 8.6 per cent. Successful transactions were focused on mid- and high-grade apartment projects or land in sub-urban regions.

Selling prices in November slightly increased in the HCM City market but remained stable in Ha Noi. However, some places in Ha Noi saw increases of 10-15 per cent in the selling price for land, including Dong Tru, Vinh Ngoc, Dong Hoi regions in Dong Anh District and An Khanh, An Thuong regions in Hoai Duc District, according to the ministry.

The ministry said the structure of property goods has been adjusted more reasonably. The nation had 63 projects registered to convert from commercial apartments to social apartments with a total volume of 42,370 units.

Le Hoang Chau, chairman of HCM City Real Estate Association (HoREA), said the domestic property market would continue to grow by the end of this year against the third quarter and prices of property market would also have increase.

The Viet Nam Real Estate Association also agreed that the local property market would be hot by year-end.

According to the Savills Viet Nam, a foreign property service provider in Viet Nam, in the third quarter of 2016, the Residential Index was 93.5 in HCM City’s market, increasing 0.6 point quarter-on-quarter (QoQ) and 4.5 points year-on-year (YoY).

There were approximately 7,500 sales, increasing 7 per cent QoQ and 43 per cent YoY. The absorption rate was 19 per cent, increasing 2 percentage points QoQ and YoY.

Low-grade apartment pricing was closer to most Vietnamese purchasers’ affordability and hence captures a larger pool of end-users. Developers offering reasonably priced units typically target areas with inexpensive and readily available land, and improved and planned infrastructure.

In Ha Noi’s market, the residential index was 105.8 in the third quarter, increasing 1 point quarter-on-quarter (QoQ) but decreasing 2.4 points year-on-year (YoY) with an average selling price of VND27.6 million per sq.m.

However, there were approximately 5,660 sales, down 6 per cent QoQ and 15 per cent YoY. The primary absorption rate was approximately 33 per cent, down 2 percentage points QoQ due to the Lunar July Ghost month and 12 percentage points YoY, said Savills Viet Nam.