Hanoi new high-end home sales hit eight-year high
Sales of new luxury apartments in the Capital city last year hit eight year high thanks to rising demands and exhausted supply sources.
Contrary to concerns over many years of excess supply, the liquidity of the high end apartment segment in Hanoi in the past year was high.Reports from Savills Vietnam showed that liquidity of the segment reached up to 80 percent, tripling against 2016. Luxury, or Grade A, apartments were priced at VND35-45 million (US$1,542-1,982) per square meters last year and mainly located at districts of Thanh Xuan, Cau Giay and Tay Ho.
Some 2,900 luxury apartments were released for sale last year
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The number of the luxury apartments released for sale last year was estimated at 2,900 units, accounting for roughly 10 percent of the city’s total apartments put for sale.
Savills experts attributed the surge to the reason that the number of high-end residential projects put for sale last year increased, but the total supply of the segment remained low while the demand was still high.
Besides, most of these projects are located at prime locations in the inner city of Hanoi. Therefore, buyers still hunted for it despite high prices, the experts said.
The Vietnam Realtor Association also said that luxury apartments were at high demands and always out of stock last year as there were no land lots in the city’s downtown areas suitable for the property development.
The same situation was also seen with low-cost (or Class C) apartments last year. The new supply of the segment last year was significantly lower than in 2016 while the demand remained high. The price of low-cost apartments was mainly at more than US$662 per square meter.
Contrary to the luxury and low-cost segments, the sales of mid-priced (Class B) apartments last year were not positive as its liquidity in the market was the lowest due to the huge supply, which cannot be absorbed in a short time. A significant amount of the apartments in this segment was still in stock.
Savills also reported that in the Hanoi property market, Vingroup, Tan Hoang Minh and Sungroup gained the highest revenue last year while Vingroup, Tan Hoang Minh and Geleximco were in top three in terms of the number of housing sold out.
Savills forecasts that the new apartment supply this year will continuously rise against last year, with some 26,300 units released for sale, of which the supply of mid-priced apartments will continuously top the market.
The rising supply source will help home buyers have more choices this year, Savills said, adding that this also poses a great challenge for owners, especially of the mid-end segment. If they cannot create a difference in branding and their product quality cannot satisfy the customers, it will be difficult to increase the liquidity.
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