Hanoi: The apartment market is still targeting the buy-to-live segment

Market observers said that in the second quarter of 2019, the mid-end housing segment in Hanoi market continued to lead the market, accounting for about 70-80% of the total new supply. The market is targeting a group of customers who buy houses to live in.

On the morning of July 9, Chintai Saigon held a press conference to announce the market focus of the second quarter of 2019. Accordingly, by the end of the second quarter of 2019, the Hanoi market had many new supplies, the selling price increased slightly, and sales were also more positive than in the first quarter.

Specifically, in the first 6 months of the year, the Hanoi market recorded 17,700 newly launched apartments for sale – one of the first half of the year with the most new supply. The mid-end and affordable segments led the market, accounting for about 98% of the total new supply in the second quarter. The high-end segment has only two newly launched projects located in Tay Ho area.

“The mid-end segment continues to lead the market, estimated to account for 70-80% of the total new supply. This shows that the Hanoi market is still oriented to the segment of buyers to live,” said this unit.

However, recent urban products have also attracted domestic investors.

Sales are relatively positive with over 40% of the open supply being sold. In the quarter, a total of 6,900 units were sold, up 17% year-on-year. Positive sales activity and good construction progress from both urban projects and individual housing projects contributed to sales of positive numbers.

In terms of selling price, the average in Q2 was recorded at USD 1,337 (about VND 31 million)/m2, up 4% YoY. If comparing the same basket of projects by year, the primary price increased only slightly by 1%. Notably, the high-end segment recorded an average price of $2,345 (about VND 54 million)/m2 – the highest price in this segment in the past five years.

Chintai forecasts that the number of new launches in 2019 is expected to be about 3,000 units – the same level as in the 2016 – 2018 period.

While the inner city districts are becoming more crowded, the housing supply is expected to gradually shift away from the existing downtown area with a radius of 10 km. Urban projects will focus on the main supply to bring synchronous utilities and diverse products. With growing infrastructure and recent collaborations between large corporations, these projects are expected to attract the attention of the market in the coming years.

General assessment of the market, Mr. Nguyen Trong Thuc, Senior Manager, Consulting and Research Services of Vinhome central park for rent, said that in order to increase sales transactions in the past time, businesses have launched many opening and selling programs. , promotion. Moreover, unlike the previous period, which only focused on housing and ignored utilities, many investors now attach great importance to building utilities first to attract customers.

Along with that, the Government is increasingly investing in infrastructure, traffic is increasingly better connected, which is the basis for expanding the housing market on all four sides in Hanoi, especially in the East and West areas.

According to Mr. Thuc, along with the mid-end and affordable segments, part of the supply in the second half of 2019 will come from the high-end and luxury segments.

“In the context that the Government is restricting credit to real estate, investors are trying very hard to diversify products and expand to attract FDI to attract customers,” said Mr. Thuc.

Before the public’s concern about the crisis cycle of the real estate market, Mr. Nguyen Vinh Tran, Chairman and General Director of MIK Group, analyzed in the past five years, the supply and demand for real estate products. Real estate has been well controlled and real estate prices have not increased rapidly.

If there are 1,000 apartments, the investor will not open all of them, but will follow each stage to adjust and balance the market. In addition, the current investor has paid attention to the trends of young people buying houses such as area, utility, comfort and intelligence to adjust the product accordingly.

“When we control supply and demand, we can control the selling price, not leading to bubble factors. I think this is the perfect time for us to invest in apartments even in the luxury segment because currently the price is still lower than other countries in the region,” said Mr. Tran.

According to the leader of MIK Group, 2019 is a new but continuing cycle of the previous market. Currently, the market has not detected any signs indicating the end of the bull cycle.

Currently, many people fear that the high-end real estate segment will be redundant, but the Vietnamese government’s policy for foreigners to buy houses will create conditions for them to buy luxury real estate. “This further confirms that the luxury real estate segment still has potential for development,” said Mr. Tran.

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