Growth in proportion of high-end transactions in Hanoi at the expense of affordable segment.
High-end apartments continued to take a larger share of newly-launched units in the second quarter of 2015, according to the latest CBRE quarterly report on Hanoi.
“Notably, for the first time, high-end apartments accounted for approximately one-third of the total newly-launched stock (30 per cent), which is higher than in any quarter since 2012,” said Ms. Nguyen Hoai An, Associate Director of CBRE Vietnam. The number of new launches in the high-end segment tripled quarter-on-quarter, with 1,518 units.
During the quarter condominiums for sale continued to show positive signs as anticipation builds over the impact of new regulations effective from July 1 that permit foreigners to own housing. According to the CBRE report a total of 5,137 new units were launched from 19 projects, a 93 per cent increase compared to the second quarter of 2014.
Overall the market’s sales performance continued to be strong in the quarter. An estimated 4,480 units were sold, up 80 per cent against Q2 last year. “It is noted that the share of transactions for high-end apartments is increasing,” Ms An said.
In the first six months of this year high-end apartment transactions accounted for 22 per cent of total sales, compared to 6 per cent in 2013 and 18 per cent in 2014. At the same time, the share of the affordable segment, which had dominated the market, fell to 26 per cent in the first half of 2015 from 49 per cent in 2013 and 33 per cent in 2014.
In terms of pricing, increases of approximately 4-6 per year-on-year were noted at several projects, especially those in good locations in reasonable proximity to the CBD or near major infrastructure under construction.
Price increases were most commonly found in the high-end and affordable segments. “Specifically, for the high-end segment, price increases were noted in large-scale projects by reputable developers that provide a full range of facilities,” Ms An said. In the affordable segment, projects that offer affordable price points or are in good locations that create opportunities for capital gain upon resale were much sought after.