This should be a better year for the Hanoi condominium market, according to CBRE Vietnam. The consultancy believes both supply and prices will increase in 2021 after the COVID-19 pandemic slowed the market last year.
During a recent media event, CBRE Vietnam Hanoi Branch Director Nguyen Hoai An explained that while the city’s real estate market was disrupted by COVID-19 social distancing measures in 2020, technology proved effective in assisting sales and helping investors in market assessment and decision making.
CBRE Vietnam research showed that the Hanoi condominium market will add anywhere from 24,000 to 26,000 new units over the next 12 months as developers look to meet the city’s strong demand for housing. Additionally, the average selling price for condominiums in Hanoi is projected to rise by 4-6 percent.
This is actually lower than projections from the Viet Nam Real Estate Association (VNREA) for the entire country. The organization recently predicted that Vietnam property prices would increase by ten percent due to scarce supply and strong demand throughout the country.
Several new residential areas are expected to spring around Hanoi in the future which will help drive condominium market expansion in the luxury segment. Meanwhile, mid-end and affordable projects will continue to move further away from the city center, according to CBRE research.
Hanoi condominium market recovers quickly
The Hanoi condominium market looks set to bounce back in the first quarter of 2021 after last year brought with it one of the worst three-month performances in recent history. In the first quarter of 2020, only 1,600 new condo units were launched. This was a 86 percent decrease from the same period in 2019.
“This was the lowest new launch supply over the past nine years,” CBRE Vietnam Manager Do Van Anh said at the time. “The pandemic prevented foreign customers from coming to Hanoi to conduct their transactions or to study the market so the housing market for foreign customers did not have significant development in the first quarter (of 2020).”
However, that looks to be a blip on the radar after both sales and launches picked up in the second half of last year. Barring any unforeseen events, CBRE Vietnam is confident the Hanoi condominium market will record a strong 2021.
