An apartment complex near Nhat Tan Bridge in Hanoi (Photo: VNA)
Hanoi (VNA) - TheHanoi condominium market had lower new supply volume in the third quarter ofthis year (Q3 2020), while the sold units have exceeded new launches, accordingto CBRE Vietnam's report on the Hanoi property market in Q3 2020.
In Q3 2020, there were about 3,500 units launched in Hanoileading to a total new launch during the first nine months of this year ofaround 10,700 units – down 61 percent year on year (y-o-y).
In terms of segments, there were only mid-end and affordableproducts launched in Q3 2020, accounting for 51 percent and 49 percent of total new launches,respectively. Most projects launched during this quarter are small to mediumprojects located outside Ring Road No 3.
Meanwhile, about 4,200 apartments were sold during thequarter, 20 percent higher than the new launch volume, although there were somedelays in sales and marketing activities due to the second wave of COVID-19 inlate July and early August.
Selling prices in the primary market in Q3 2020 averaged 1,325 USD per sq.m (excluding VAT andmaintenance fees), down by 4 percent y-o-y due to the higher share of newlaunches in the affordable segment.
Moving forwards, the level of new launches is expected to hoverat around 14,000 - 16,000 units in 2020, allowing sales absorption to catch up.The primary pricing is forecast to remain flat in Q4 2020 since new supply isheavily dominated by the mid-end segment and higher competition in this segment.
Nguyen Hoai An, director of HanoiBranch, CBRE Vietnam, said: “The Hanoi condominium market has been heavilydominated by local, Hanoi-based developers. We expect this to change in thenear future, as an increasing number of foreign developers, and VietnameseSouthern-based developers areexpected to invest in new projects in Hanoi.”/.
