Solid fourth quarter of 2015 augers well for market in new year, according to JLL.
Demand was at an all-time high in Hanoi’s residential market in the fourth quarter of 2015 and is expected to continue to show strong performance in 2016, according to the latest report from Jones Lang LaSalle (JLL) Vietnam.
Launch activity increased across the market during the quarter. New supply reached 8,800 units, up 18 per cent against the third quarter and bringing the 2015 total to 28,300, exceeding the combined rate of 2013-2014.
Construction progressed well in many developments during the year, with a total of 23,200 newly-completed units reported at year’s-end.
Total Stock (Completed Supply) - Apartments
Demand, meanwhile, was at an all-time high. Take-up was up 8 per cent quarter-on-quarter, to 8,500 units, nearly half of which were priced between $1,000 and $1,500 per sq m. Hoang Mai district led sales during the quarter, with 2,100 units, followed by Hai Ba Trung, Thanh Xuan, and Nam Tu Liem districts, with 1,300 units each.
Regarding price, growth was at 1.8 per cent quarter-on-quarter, with projects launched during the year seeing large quarterly increases of 3-5 per cent. Prices in the premium segment moved at the fastest pace, of 3.2 per cent quarter-on-quarter.
According to JLL, high-level supply is expected for the coming year. Around 21,000 units will be completed, 85 per cent of which are already sold. Of the projected total the mid-end segment will represent the largest proportion.
Many new launches are expected as improved sentiment should attract more developers and development projects to the residential market.
The residential market is expected to continue to show strong performance. According to JLL, demand growth will remain positive in the coming year, supported by continued strong investor sentiment and the availability of housing credit. The price uptrend will continue to strengthen.