The real estate market of Hanoi saw high demand for Grade A apartments for rent and sale in the third quarter, according to Savill Vietnam’s quarterly report on Hanoi's property market.
The real estate market of Hanoi saw high demand for Grade A apartments for rent and sale in the third quarter.
During the third quarter,about 4,330 new serviced apartments were offered on the Hanoi market, decreasing 8 percent quarter-on-quarter (QoQ) after the closure of two projects and the entry of one. Grade Ahad the strongest take-up while Grade B and C suffered decreases in leasedunits, said Do Thu Hang, Director of the Research and Consultancy Department at SavillsVietnam’s branch in Hanoi.
Grade A apartments must bebuilt near convenient transportation systems, with good facilities andconvenient social and service infrastructure. They also need a professionalmanagement and operation company.
Average market-wide rentincreased 4 percent QoQ and occupancy remained high at 84 percent. Within theGrade A segment, branded operators charged 19 percent more for rent thannon-branded counterparts, Hang said at a recent press conference on releasing the thirdquarter report on Hanoi propertymarket.
Meanwhile, in the thirdquarter, 11 new and the next phases of nine projects of apartments for saleprovided approximately 8,100 units, up 23 percent QoQ and 17 percentyear-on-year. Grade B remained the largest supplier, accounting for 67 percentof the market share, said Hang.
Hang said sales were down 1 percent QoQbut up 50 percent year-on-year due to high supply from Vingroup over the pastyear. Eastern districts had the highest sales in the quarter with a 40 percentshare.
Meanwhile, the HCM Citymarket was more attractive than Hanoi in terms of selling price, rent, rate of return and profitmargin, NguyenNgoc Hieu, Head of Market Research Department of Batdongsan.com.vn, said at an event in Hanoi on December 31,2019 to release its thirdquarter report on Hanoi andHCM City property markets.
" HCM City is known as aleading city in economic development, most foreign companies in Vietnam choose HCM City for theirrepresentative offices," Hieu said.
This city has morediversification in real estate products than Hanoi, he said. Besides that, it hasattracted many workers and foreign experts so strong growth in population hasmade demand for accommodation and investment in HCM City's property market muchhigher than in Hanoiin all segments.
Hieu also said that demand foraccommodation and investment in HCM City is always higher than Hanoi. Many investors from Hanoi have chosen HCM City to put theircapital.
Batdongsan.com.vn’s dataabout the asking prices of apartments between Vietnam’s two biggest real estate marketsshows that in the third quarter, the average asking price of apartment in HCMCity was 25 percent higher than Hanoi's. The gap reached nearly 40 percent for apartments in thecentral areas of these cities.
Not only in the apartmentsegment, the average growth rate of house and townhouse prices in HCM City wasalso higher than in Hanoi. The price of houses in Hanoi was up about 10 percent, while it wasup to 26 percent in HCM City.
Townhouses in the southerncity also saw an average price increase of 12.6 percent, compared to 7.6 percentin Hanoi./.VNA
Real estate remained the second biggest magnet for FDI in 2019, following processing – manufacturing, as it attracted $3.88 billion FDI, equivalent to 10.2 percent of the total registered.
The market was quiet most of the time in 2019 though it witnessed many transactions in some segments in the first months of the year.