Hanoi Apartment for Sale Market Q2 2021
Market recovery faces the fourth COVID-19 wave headwind
Developers held off new launches amid the fourth wave of the pandemic
The new official supply added 2,067 units to total stock in 2Q21, registering a significant drop of 43.3% q-o-q. With the pandemic resurgence induced public gathering restrictions delaying grand launch events, limited new projects were launched for sale in 2Q21. Instead, developers focused on their existing projects and continuity in offloading the unsold inventory. Notably, The Metroline Sakura Phase in Vinhomes Smart City was the only highlight in the quarter, supplying 703 first-hand units to the market.
Homebuyers favour fairly priced units in township projects
In tandem with limited new supply, homes sale fell by 14.9% q-o-q, bringing the total take-up to 2,726 apartments. Among sales, 44% was generated in suburban district Nam Tu Liem, followed by emerging Gia Lam District with 18% market share. Cau Giay District also drew buyer attention as it occupied a 12% proportion of the sale.
The cumulative sale rate remained high at over 90% for the past five years, showing a solid demand on the market. On a project basis, the performance of properties located in township projects with established developers and a comprehensive range of facilities surpassed those of smaller scale development. Keen interest was observed in smaller units with better affordability.
Price mostly flat quarter on quarter
The average primary price largely remained unchanged in 2Q21 at USD 1,560 per sqm. Developers tend to increase the price but offset with steep discounts and lucrative payment schemes rather than lower quotations. Meanwhile, the secondary market also saw 2.2% q-o-q growth, driven by more luxury units entering the secondary basket.
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Outlook: Market is expected to welcome new ultra-luxury grade apartment
Although prolonged legal approval previously in places were more relaxed, the resurgence of COVID-19 cases lately weighed on the pace of new launches. The supply forecast for 2H21 has been reduced to 10,000-15,000 units. However, healthy sales momentum is anticipated to continue this year as dwelling demand remains resilient.
Primary housing prices will likely pick up in 2H21 on the back of the rising cost of construction material and the entrance of ultra-luxury grade apartments. Located in a prime location at Hoan Kiem district, the selling price of this first branded residence is expected to record an all-time high level in the city's high-end properties.
- Prices exclude VAT and sinking fund/maintenance fee.
- Official launch: Projects are considered as officially launched when the Sale Purchase Agreements are signed, typically upon foundation completion.
Source: JLL Research