Hanoi: The real estate market is desperate for supplies, and the project has just recently come to light

DNHN - Supply is limited and prices are rising rapidly, the recently opened apartment complex in the southwest of Linh Dam peninsula has become the focal point while the market's need for homes continues to rise.

According to the Economic - Financial - Real Estate Study Institute of Datsinh Services' research report on the residential real estate market in the first six months of 2022, the supply of flats in Hanoi remains constant. The city brought over 3,400 new items to the market in the second quarter of 2022, a 28 per cent decrease from the previous quarter. Primary supply was also down 43 per cent year on year, with 7,700 goods.

Primary product scarcity

In the first six months of the year, new supply in all categories was restricted, and real estate prices rose substantially across the board, from land plots to flats and villas... This is stated in the Institute of Construction Economics' Market Assessment Report for Real Estate in the First Six Months of 2022. (Ministry of Construction).

In terms of the selling price, apartments in Hanoi in all sectors and locations achieved new price levels in the first months of the year. According to CBRE's Hanoi Real Estate Market Spotlight report for the second quarter of 2022, the average selling price of main apartments was $1,872/m2, a 27 per cent increase over the same time last year. The average main selling price in Hanoi is predicted to rise at an 8-10% compound annual growth rate until 2024.

Because supply is limited and prices are rising, key projects are being offered for sale at this time, drawing the interest of a significant number of actual buyers and investors. Recognizing the market realities, the number of clients attending the launch ceremony of the Hanoi Meloy Residences project - a multi-utility apartment complex in Southwest Linh Dam - was limited.

Several flats were successfully traded during the opening ceremony. Even late at night, advisors are continuously present in the Sales Gallery area to help consumers.

Mr Thai Vuong (Hoang Mai, Hanoi), a client who just booked an apartment at Hanoi Melody Residences, said, "I had wanted to purchase an apartment since the end of last year, but my financial resources are insufficient." This year's price increases were swift; at the correct moment, the Hanoi Melody Residences project was acceptable for the family's demands and budget, so they promptly bought one unit. If you continue to delay in closing the transaction, the price will rise even more."

Hanoi Melody Residences is Hung Thinh Land's first project in Hanoi. This is not only a rare main project to be issued at this time, but it is also one of the few projects in Linh Dam that offers inhabitants a range of utilities. In addition, the reputation of Hung Thinh Land - the top real estate developer in the South with over 100,000 clients serviced - is a powerful market appeal factor.

Secondary price rise

Along with the major apartment market, the secondary apartment market saw price increases in several places. According to CBRE, the average secondary selling price for the whole market hit 1,293 USD/m2, a 9% increase over the same time the previous year. High-end developments in several central districts, such as Hai Ba Trung, Dong Da, and Ba Dinh, increased by more than 10% year on year.

According to the Institute of Construction Economics, the number of apartment secondary sales in Hanoi climbed by around 15.9 per cent in the first six months of 2022 compared to the same time in 2021. The absorption rate of apartment supply on the secondary market rose in the first six months of 2022 compared to the same time in 2021, reaching 61.5 per cent in Hanoi (up 8.4 per cent).

Secondary transaction prices for flats in neighbourhoods increased steadily quarterly. For instance, in both Hanoi and Ho Chi Minh City, the category with the biggest rise in the final six months of 2021 is inexpensive flats (transaction price of affordable apartments in Hanoi increased by about 5.6 per cent, in Ho Chi Minh City increased by about 5.3 per cent). Transaction prices for mid-range apartments in Hanoi grew dramatically in various neighbourhoods during the first six months of 2022, including Hai Ba Trung, Long Bien, and Gia Lam.

According to experts, the market's current high housing prices are attributable to a variety of variables, including strong demand while open supply is not excessive or even constrained, and inflation raises prices... As long as these variables persist, the market's upward trend will continue.

Lap Nguyen