Apartment prices to go up 5 – 7 percent annually in 3 years: CBRE

Illustrative photo (Source: VNA)

Hanoi (VNA) – The primary prices of apartments are likely to increase about 5 – 7 percent annually over the next three years due to higher product positioning and expectations for more launches of high-end apartments in prime and central locations, according to CBRE Vietnam.

Apartment supply in Hanoi picked up in the first three quarters of 2021 with some 11,430 units launched, up 7 percent compared to a year earlier, a survey by CBRE shows.

Over 3,480 units were launched in the third quarter of this year, a year-on-year drop of 1 percent. About 93 percent of the units are located in the west and the east of Hanoi, and 65 percent of them are of the high-end segment, said the survey.

The launches were the most active in July and at the end of September, when Hanoi lifted its two-month social distancing order.

The capital city saw apartment sales declining 33 percent to nearly 3,000 units in Q3. However, in the context of prolonged social distancing, this was still a positive signal for the market, said Nguyen Hoai An, CBRE Hanoi Branch Director.

The primary market saw apartment prices in the previous quarter surged 16 percent year on year to 1,542 USD per sq.m because of a greater share of high-end units. The secondary market, meanwhile, was stagnant with prices edging down 1 percent quarter-on-quarter and up 2 percent year-on-year as a result of COVID-19 restrictions.

From January – September, close to 11,000 units found buyers, down 1 percent year-on-year.

The cooperation between domestic and foreign developers and foreign management firms is providing Hanoi with more choices in the apartment segment, An said, adding that thanks to that, the market will be likely to experience stiffer competition with a wider range of products in the coming time.

The total of units rolled out in 2021 is expected to reach between 17,000 – 18,000, and sales will recover in the fourth quarter of this year, according to CBRE.

It also forecast that with the COVID-19 vaccine rollout going smoothly in 2022, facilitating economic recovery and border reopening, apartment supply and sales will rebound to 25,000 – 27,000 units./.