Hanoi Apartment for Sale Market 3Q21

Covid-19 continued to develop complexities, resulting in strict social distancing measures in Hanoi. The situation interrupted construction activities, causing difficulties to new residential projects, hurdles to investment procedures and delays to new sale events. The current market-exploration sentiment of the developer is also the reason for the continued low supply of apartments in 3Q21. The new official supply^[2] totalling 1,018 units in 3Q21 is down by half compared to the 2Q21 level. Most of the new supply is in the Nam Tu Liem District. Only two projects launched – The Matrix One and Masteri Smart City, with 370 and 300 units, accounted for 36.3% and 29.4% of the total new launches.

Sales decreased with restricted direct transactions

Total sales in 3Q21 reached 1,449 units, fell 46.8% q-o-q. The main reason for the drop in the new take-up was the disruption of direct off-line transactions. Some property developers actively adapted to situation, converting from the traditional approach to online communication with homebuyers. Nonetheless, since the apartment is a special product with high value and involves several legal procedures, the buyers are still concerned as they are unable to directly survey and get first-hand information about the project.

Price continues to be stable

The average primary price was at USD 1,650 per sqm in 3Q21, increased by 9.3% y-o-y mainly due to the addition of high-quality projects to the primary basket and low-priced projects sold out. The market recorded a stable price on project-base, slight increase at 1.4% y-o-y and 0.9% q-o-q. Developers have been improving sales policies by offering incentives to homebuyers, such as zero or low-interest rates, discounts for customers signing sale contracts/deposit contracts during Covid-19, free management fees and utility usage costs, especially in the Luxury and Premium segments.