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CBRE: Hanoi apartment prices increase 5-7% a year in the next 3 years


CBRE forecasts that the primary price of apartments in the Hanoi market will increase by 5-7% a year in the next 3 years.

CBRE’s third-quarter market report predicts that in 2022, if the vaccination schedule goes smoothly, creating conditions for economic recovery as well as gradually reopening borders, the supply of new apartments for sale and Sales are expected to recover to the threshold of 25,000-27,000 units. Primary prices are forecast to increase by 5-7% per year over the next 3 years. The reason is that the products of urban areas continue to upgrade their positioning as well as the expectation that high-end and luxury projects will open for sale in a number of prime and central locations.

Currently, the selling price on the primary market in the third quarter is recorded at an average of $1,542 per square meter (excluding VAT and maintenance fees), up 16% YoY due to the proportion of high-end projects opened for sale in the quarter. higher. In the third quarter of last year, the proportion of the affordable segment accounted for 49% of new sales, resulting in the average primary selling price at a low threshold.

In the secondary market, due to the impact of the epidemic, the average secondary price reached $1,156 per square meter, down 1% QoQ and up 2% YoY. The yield of apartments for rent in the quarter continued to be affected by the pandemic and social distancing measures, especially in areas where foreign experts are concentrated. Specifically, the central area, Dong Da – Ba Dinh, and Tay Ho only recorded yields of 3.7-4.6%, about 1 percentage point lower than before the epidemic.

Regarding supply, CBRE said that in the past 3 quarters, the number of new apartments grew slightly compared to 2020, but still significantly lower than in the pre-epidemic period. Accordingly, in 9 months, 11,430 newly launched units were recorded, up 7% YoY; in the third quarter alone, there were 3,483 units, down 1% year-on-year. Due to Covid-19 disrupting sales activities, sales in the third quarter only reached nearly 3,000 units, down 33% year-on-year. Generally for 3 quarters, the number of units sold was nearly 11,000, down slightly by 1% year-on-year.

In 2021, the new offering supply is expected to fluctuate between 17,000 – 18,000 units, equivalent to the opening threshold of 2020. Sales are expected to recover in the fourth quarter as sales activities gradually return. normal.

Nguyen Hoai An, Director of CBRE Vietnam, Hanoi branch, said that the combination of domestic and foreign investors or domestic investors with foreign management units is helping the Hanoi market. more selection of new, differentiated and more competitive products. This trend is expected to continue in the near future, and is proof that the market is increasingly competitive and products are more diversified.

Duc Minh



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