Hanoi condominiums will remain a strong sector, with supply remaining strong for the rest of the year.
According to Colliers International in its latest research report, more than 20,000 Hanoi condominium units are set to be launched before the end of this year.
With positive market sentiment, sales prices are expected to follow an upward trend.
New projects tend to be located in a master community where having all necessary facilities and amenities for future residents, Colliers noted.
PERFORMANCE
The Hanoi condominiums market recorded 4,950 successful transactions, up 24 percent compared with the previous quarter.
Effective sales events and various promotion packages helped to push sale rates.
The positive market sentiment initiated slight price increases.
In the primary market price growth of between 1 and 2 percent q-o-q was recorded across all segments.
This was especially the case in projects with a close to the city center, or ongoing infrastructure projects.
Prices here saw increases in sales prices of between 5 percent and 7 percent, according to Colliers.
SUPPLY
The review quarter had approximately 6,497 units from 15 condominium projects, an increase of 45 percent q-o-q in newly launched supply.
The mid- to high-end segment dominated new launches, accounting for 52 percent of total new projects.
With well-established infrastructure, the west and east areas were hot spots for new residential developments in the Hanoi condominium sector.
DEMAND
Rapid urbanization rate, reduced household size and a young population continue to be key demand drivers of the Hanoi condominiums market.
The review quarter saw strong sales activities in high-end apartments due to improved investor confidence however, real demand remained in the affordable to mid-end segment for owner-occupation.
Units from 45 sqm to 90 sqm were favorite options for end-users with limited budgets.
