2018 witnessed strong fluctuations of the real estate market. Some commented that the real estate market is slowing down after reaching the "sinusoidal peak". In your opinion, is the downward trend the common graph for the apartment segment in Hanoi?
Le The Nam: In contrast to the comments that the real estate segment is going down, the apartment segment has positive and stable changes. Looking back the past year, I think that the supply and demand are at a relative level of interference. Most of the projects are out of stock quickly.
Although in the first quarter of 2018, the fire incident at Carina Apartment (District 8, HCMC) partly affected buyers but it had more impacts on the Ho Chi Minh City market than in Hanoi. The popular, middle-class, high-end and super-luxury apartments in Hanoi are sold well.
Especially in the fourth quarter of 2018, apartment segment had been crowned with very positive developments.
Le The Nam – General Director of Hung Vuong Housing Joint Stock Company.
What was the reason that, at the end of the year, apartment segment tended to go up so strongly?
Le The Nam: Traditionally, the real estate market is positive by the end of the year, especially the apartment segment. Because this is usually the time money is being poured into real estate. People also want to buy home at the end of the year.
Especially, the Vincity project in Hanoi has become the driving force for the apartment segment. According to our statistics, 3,500 apartments of the newly opened project have been sold. Investors do not sell massively but buyers have to cast lots.
In general, the real estate market in the apartment segment in Hanoi is developing. Another reason is the scarcity of sales and high degree of difference of apartment products.
I think 2019 will continue the momentum of the end of 2018. The apartment segment would be stable and somewhat stronger.
Recently, quite a lot of disputes related to apartment buildings have happened, leading to buyers’ hesitation. But as you said above, it seems that despite the disputes, the apartment market is still developing with positive signals. Is this a result of a change in selection criteria for an apartment?
Le The Nam: In fact, the disputes in the apartment significantly affect home buyers’ psychology, but the tendency of being interested in living in an apartment due to is modernity and civilization is still popular. Buyers’ selection criteria are stricter. In my opinion, it is not the apartment’s area that affects buyers’ buying decision as before. In reality, the price of apartments in popular buildings ranges between 800 million to over 1 billion VND.
There are currently 3 criteria that buyers are interested in. The first is the reputation of the owner. If the owner has long experience in the real estate market, buyers will be very considerate. Second is the progress of the apartment. Third is the support from the bank. If the bank offers long-term preferential loans, this is an advantage for homebuyers.
What’s your prediction of the development of the apartment segment in 2019?
Le The Nam: In my opinion, the segment will continue the 2018’s trend. It will be stable and even develop stronger. At present, customers’ demand is big, while the market is not over-supplied.
Thank you!
