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Hanoi & HCMC residential price index up

Released at: 07:51, 24/07/2015

Hanoi & HCMC residential price index up

Savills Vietnam report notes differing factors behind increases in both cities.

by Thu Hoang

Ho Chi Minh City’s residential index in the second quarter of this year was 89.4, an increase of 0.3 points quarter-on-quarter (q-o-q) and stable year-on-year (y-o-y), according to a recent Savills Vietnam report.

The overall absorption rate was 19 per cent, a decline of 2 percentage points q-o-q but an increase of 2 percentage points y-o-y.

HCMC residential price index

Source: Savills Vietnam

The residential index has stabilized over the last two years after falling continuously from 2011 to 2012. The development of new projects from credible developers and the economic recovery have boosted sales and increased buyer confidence.

New projects with higher development standards contributed to the slight price improvement in the quarter. The residential q-o-q index is expected to remain stable in the next few quarters.

Due to a price increase in more than half of existing projects, Hanoi’s residential index in the second quarter was 139, up 27 points q-o-q and 38.7 points y-o-y, according to the report.

Hanoi residential price index

Source: Savills Vietnam

The quarter-on-base (q-o-b) index was 94 in the quarter, up 1.3 points compared to the first quarter. Both q-o-q and q-o-b continued to trend upwards.

The inventory ratio increased by 9 percentage points q-o-q due to new supply yet fell 20 percentage point y-o-y due to the continued strong performance of the whole market. The overall absorption rate decreased q-o-q but increased y-o-y, to 34 per cent.

The average price was VND25.4 million per sq m in the capital. Hoan Kiem, Ba Dinh and Tay Ho districts were the most expensive areas, due to project quality and their central locations.

The average price was VND25.4 million per sq m. Hoan Kiem, Ba Dinh and Tay Ho districts were the most expensive areas, due to their central locations and project quality.

  • TAGS
  • Savills Vietnam
  • the residential index
  • increase
  • Ho Chi Minh City
  • Hanoi
  • absorption

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