Savills: The price gap between suburban and urban apartments is being shortened
sonnguyen 16-10-2020, 11:40

The number of new apartments launched for sale in the third quarter reached 3,100 units, the lowest in the past 5 years, the number of successful transactions also decreased 60% compared to the same period last year.

In the quarter, suburban apartment prices are being pushed up, some projects even not located in the center are also sold for 50-60 million VND / m2. Forecast in the fourth quarter, about 9,800 apartments will be launched, the number shows the recovery of the market but still much lower than the previous years.

In the report on the Hanoi real estate market in the third quarter, Ms. Do Thu Hang, Director of Savills Research and Consultancy in Hanoi, said the market continues to be price sensitive and volatile with the lack of supply. A. Demand for affordable apartments has increased rapidly in recent years. It is predicted that when the Covid-19 pandemic is under control, the market will fully recover thanks to long-term economic and population growth.

During the quarter, about 3,100 apartments from 4 new projects and the next phase of 9 new projects launched, down 50% QoQ and 60% YoY, the lowest new supply in the past 5 years. The primary stock was 26,800 units, down 8% QoQ and 9% YoY. Developers delay new launches due to the impact of instability.

According to representatives of Savills Hanoi, during the quarter, investors delayed the sale of new projects due to the impact of instability. Photo: Thuy Tien

The number of sold units also decreased by 3% QoQ to 5,200 units. Compared to the same period last year, the number of units sold in the third quarter was 44% lower. Grade B and Grade C apartments account for almost all sold units. As explained by Savills, demand decreased due to lack of new supply and high-priced inventories.

In terms of selling price, the average primary price increased by 3% QoQ and 10% YoY to UDS 1,500 / m2. Average secondary prices were more affected by the pandemic, down 1% QoQ to $ 1,157 / sqm.

A special feature about apartment prices in Hanoi recently, according to Ms. Do Thu Hang, is that apartment prices are narrowing between inner and suburban areas. Some apartment projects in My Dinh area, although not in the central area, prices have been pushed up to 50-60 million VND / m2. Developers are focusing on the utility factor to compensate for the location disadvantages that are supposed to be the reason for this trend.

Director of Savills Research and Consultancy Hanoi forecasts that in the fourth quarter, about 9,800 apartments from one current project and 11 projects in the future will be launched. Representatives of Savills said that this number is more positive than the market overview in 2020, but still much lower than the same period of previous years. Grade B will continue to lead the market. Comparing between regions, Gia Lam and Tu Liem will lead the market with 38% and 38% and 37% market share respectively.

Source: – Translated by