Savills index rises in capital but heads downwards in southern city.
The residential index for the Hanoi market in the third quarter increased 0.03 points quarter-on-quarter (q-o-q) and 6 points year-on-year (y-o-y) to 108.3 points, according to a Savills Vietnam report released on November 13.
The quarter-on-base (q-o-b) index was 92 points, down 2 points compared to the second quarter of 2015.
Hanoi's Residential q-o-q Index
The inventory ratio declined sharply, by 11 percentage points q-o-q and 7 percentage points y-o-y due to continued strong performance.
The average primary price was VND26 million ($1,160) per sq m, increasing 6 per cent q-o-q and down 2 per cent y-o-y, mainly due to the majority of newly-launched projects being Grade B with higher than average prices.
The average secondary price decreased 2.3 per cent q-o-q due to a decline of greater than 50 per cent in secondary market projects.
Ba Dinh district had the highest average asking price, followed by Dong Da and Hai Ba Trung districts.
In Ho Chi Minh City, meanwhile, the residential index in the third quarter was 88.9 points, decreasing 0.5 points q-o-q and y-o-y, according to the report.
The overall absorption rate was 17 per cent, falling 2 percentage points q-o-q and y-o-y. There was a strong increase in transaction volumes, with approximately 5,220 sales, up 4 per cent q-o-q and 59 per cent y-o-y; the highest in the last five years.
HCMC's Residential q-o-q Index
The residential index has been relatively stable over the last five quarters. In recent quarters the apartment market has become active in terms of new supply and sales, according to the report.
Projects developed in strategic locations by credible developers have attracted homebuyers and investors. Strong financial support from banks and developers also helped to increase buyer confidence.