JLL report notes condominium prices have risen 1 to 2% per quarter.
The residential markets in both Hanoi and Ho Chi Minh City have continued to achieve positive outcomes, with condominium prices moving upwards by 1 to 2 per cent per quarter as expected, according to the latest Vietnam Property Market in Quarter 1 report released by Jones Lang LaSalle (JLL).
Total new supply in both cities reached nearly 20,000 units in the first quarter and 18,000 units were sold in total; an impressive figure compared to recent years. The market in the first quarter continued the uptrend witnessed in 2015, with numerous projects achieving sales rates of up to 90 per cent at launch.
In Hanoi prices have risen faster. In the primary market prices increased further, of 1 to 5 per cent quarter-on-quarter. At some completed projects, discounts of 1 to 3 per cent have been offered on remaining units.
In the secondary market, the affordable segment reported the highest growth, of 1.9 per cent quarter-on-quarter. Price increases at completed projects were reported at 1.5 per cent quarter-on-quarter, compared with 1.8 per cent at under-construction developments.
Ho Chi Minh City also saw continued high price increases in the residential segment. In the primary market, especially apartments, prices moved higher and considerably so in the mid-end segment. Marked increases were seen in Districts 2 and 4. Prices in villas/townhouses continued to rise at a fast pace, mostly led by some large-scale affordable projects in District 9.
In the secondary market, apartment prices were higher across the board, with growth of 57 per cent quarter-on-quarter recorded at an increasing number of properties. Villas/townhouses, meanwhile, saw price rises continuing but at a slower pace than in recent quarters.
2016 remains a positive year for Vietnam’s real estate market with bright signs in most segments. According to Mr. Stephen Wyatt, General Director of JLL Vietnam, the property market has seen 25 years of development with various ups and downs. The market is developing and maturing at a faster rate than previously seen.
“Developers, investors, banks and government authorities are more alert to market dynamics and prudent in their actions and roles,” he said. “JLL believes in strong parameters and the development of the property market in the future, and 2016, in particular, will remain a year of promising prospects despite global challenges.”