Greater Hanoi Ready-built Landed Property 3Q21

Stable supply despite the pandemic impact 

New official launches^[3] in the Greater Hanoi area reached 870 units, stable q-o-q. Hanoi accounted for up to 70% of new supply, contributed by projects launched in Dong Anh and Thach That districts, less affected by the pandemic than other areas in Hanoi. However, the fourth outbreak continued to strain the supply of four selected satellite provinces, with only 273 units launched totally. Bac Ninh province accounted for up to 89% of the new supply, while Hai Phong province recorded a minimal supply of 30 units. Meanwhile, Hung Yen and Vinh Phuc recorded no new project launch in this quarter.

Except Bac Ninh, all cities/provinces posted a decrease in transactions

The total take-up in Greater Hanoi reached 625 units in 3Q21, a slight drop of 10% q-o-q.  In Hanoi, the absorption rate was 70%, with 420 units sold out. Transactions mainly took place in areas with new supply and less affected by Covid-19. Meanwhile, the four satellite provinces recorded 205 units sold, mostly in Bac Ninh. Notably, market sentiment appeared to be positive in Bac Ninh with 172 units sold, owing to its good FDI attraction and the upgrade of Tu Son from a town to a city-level administration.

Primary prices continued to record a strong increase

In 3Q21, the average primary prices in Greater Hanoi were recorded at around USD 4,468 per sqm land. The whole Northern area achieved strong price growth by year at 12%, but decreased 9.6% q-o-q, mainly due to the launch of two new projects in Dong Anh District in Hanoi within the range of USD 3,500 – 4,500 per sqm land, lower selling prices than the average base. In Hanoi, a typical increase is recorded at around 3-5% q-o-q on a project basis. Among the four satellite provinces, Bac Ninh recorded the highest price growth at 8.4% q-o-q, thanks to positive market sentiment from the establishment of Tu Son City.