Supply of apartment in Hanoi in the first three quarters (3Q) this year reached 267,800 units, a record high compared to 196,000 in the previous period, JLL has said in a latest report.
Total supply in 3Q/2019 rose 36.63% compared to that in the first nine months 2018 and 67.37% compared to that in 3Q/2017, according to the report which was released earlier this month.
The supply was resulted from strong new completions which hit more than 36,000 units in a number of projects launched in the previous years.
Between January and September, new launches were only 6,400 units, falling 22% from the same period last year. More than 70% of the new launches came from Vinhomes Ocean Park in Gia Lam District and Vinhomes Smart City in Nam Tu Liem District.
Of the total, mid-end segment accounted for the large part, followed by affordable housing and premium apartments. Luxury units were recently found with the ratio of less than 1% out of the total stocks.
In terms of sales, the number of sold units was 9,346, down 10% on year, the report showed, adding that the East suburb witnessed significant demand growth.
The majority of demand for apartments came from end-users thanks to favorable buying conditions, improved infrastructure and attractive amenities, JLL said in the report.
Meanwhile, average primary prices increased by 6.5% on year to US$1,472 per square meter (sq.m) during the mine-month period and the increasing trend has maintained in recent quarters.
Outlook
By the end of this year, the total supply is likely to climb to 10,789 units, surging 35% on year. The future launches will mainly come from existing projects, including those developed by BRG Group and Vingroup which will open to the market in the next quarter.
The new launches in 4Q/2019 might be more than 1,000 units from several projects.
JLL forecast the prices will be stable for the remainder of the year thanks to upbeat sentiment from buyers. For that reason, developers will focus more on quality of new launches.
In short, developers will expand out into suburban areas due to limited developable land in the inner city.
