According to CBRE Vietnam, the supply of new apartments in the city. HCM in the first 6 months of 2020 decreased 38.6% over the same period to 5250 units while the transaction volume decreased 49.1% over the same period to 5338 units.

The main reason is that many owners postpone the sale to the last 6 months of 2020 under the influence of Covid-19. The average primary price increased 4% y-o-y in the second quarter of 2020 and 6.9% y-o-y in the first 6 months of 2020 despite low transaction volumes.

The primary price of a mid-end apartment grew the fastest by 12.8% over the same period in the first 6 months of 2020.

VNDIRECT expects that the housing demand in District 9 District 2 and Thu Duc District will grow strongly thanks to upcoming infrastructure development projects (Metro Line 1 HCM-Long Thanh-Dau Giay Expressway, belt 2 and Hanoi highway).

In addition, in August 2020 the Government agreed to merge the three above districts to form Thu Duc city. In the second quarter of 2020 apartment prices have increased by 15-25% over the same period as Vinhomes Grand Park (up 17% over the same period), Jamila Khang Dien and Safira Khang Dien (up 15-30%).

Meanwhile, the apartment market in Hanoi in the first 6 months of 2020 witnessed a sharp decline in new supply (down 65% over the same period) to 7208 units and sales (down 55.6% compared to that of the same period) down to 7233 units.

The mid-end segment continued to lead the market, contributing 88.3% to total new supply and accounting for 86.8% of total sales. Vinhomes Ocean Park consolidated its leading position with approximately 2600 units sold, accounting for 50.3% of total transaction volume in Q2 /2020.

VNDIRECT expects about 24200 apartments from 22 projects to be launched in the second half of 2020 mainly in the mid-end segment.

Source: vietnamfinance.vn – Translated by fintel.vn