The Vietnamese dong might be weakened by two percent; interest rate in the banking system likely to further decrease; prices of gold and stocks may fluctuate; therefore, capital - according to experts – might be channelled into the real estate market. The ground for this estimation is an increasing number of apartments offered to the market, and referring to statistics of market analysing companies, the number of successful transactions is quite high.
Improved liquidity
According to CBRE’s report on Hanoi market in the third quarter (QIII), the number of complete apartments in the reporting period reached 13,000. The number of successful transactions is considerably improved in comparison with that of QII, this is a good signal for project owners.
From the beginning of October, many projects of commercial apartments, from high segment, middle segment to low one have offered products. Latest, the real estate exchange floor union G5 has started to sell high class apartments Discovery Complex at price from VND27 million a sqm. (excluding VAT). The Hanoi Housing Development and Investment JSC. no 7 (Handico 7) has offered 110 apartments of the CT2A-2B building of Tay Ho Residence project (Lac Long Quan street, Xuan La ward, Tay Ho district) at a price of VND32- 33 million a sqm.
Sharing the same estimation with CBRE, Savills reports showed that segment of apartment for purchase has undoubtedly been improved. Nearly completed apartments are still no. 1 choice of customers. Especially, in projects with proper construction progress, the transaction result is more positive.
Mr Nguyen Huu Cuong, Chairman of Hanoi Real Estate Club said that, the number of people interested in high and middle apartment segments increases. “Although the market is not effervescent, there are always people with interest. Customers purchasing houses of high or middle apartment segments at this time are those who have houses of their own but still want to possess a better living environment, besides, they recognize this is a good opportunity to find an apartment in good position with convenient service” Mr Cuong said.
Mr Richard Leech, CEO of CBRE Vietnam also shared that, the transaction number of apartments also goes up over QII both in middle segment (about VND15 million a sqm.) and high segment (about VND40 million a sqm.). “If during many quarters, apartments at high prices of about VND40 million a sqm. cannot find purchasers, the current situation has shown the contrary. High price apartment segment has brought positive revenues in the third quarter,” Mr Richard shared gladly.
Real value apartments found consumers
According to CBRE, positive revenues are recorded in projects like Lancaster, Indochina Plaza Hanoi and Royal City; Hoang Thanh Tower project has had over 10 successful transactions with apartments at price from VND87 million a sqm. Purchased apartments are mainly large ones. Mr Richard Leech analysed that real value apartments still find customers despite the market stagnancy.
“Nearly completed apartments are still number one choice of customers. Especially, projects in proper construction progress, with favourable policies have shown more positive transaction results”, Mr Leech emphasized.
However, according to many experts, when Hanoi apartment market returns active again, customers must get sober to analyse carefully construction progress, its quality and after - sale commitments.
CBRE also said that strongly increasing demand of high class apartments has shown available capacity of buying these apartments, especially when living standard gets higher and higher. Moreover, the key factor of product selling is the adequacy between price and quality. Apart from assuring apartment quality and construction progress, project owners are offering many financial solutions and convenient policies for customers.
Analysing the market, another market analysis organization, Cushman & Wakefield, estimated that the fourth quarter 2013 will see many more activities in all segments, and the real estate market will attract investors both domestically and internationally. If inflation remains stable, the year 2014 will be more promising for the real estate market and it will gain more trust of customers. “I believe that the year end capital will flow into the real estate market” - the Head of this organization confirmed.
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