The inventory ratio of the residential realty market in Hanoi fell 11 percentage points quarter-on-quarters and seven percentage points year-on-year thanks to continued strong performance, Savills Vietnam
said in its latest report.
The residential index climbed 0.03 point quarter-on-quarter and six points year-on-year to 108.3 points, the real estate brokerage firm said.
Savills Vietnam noted that the average primary price was 26 million dong ($1,156) a square meter, increasing 6% quarter-on-quarter and decreasing 2% year-on-year mainly due to the majority of newly launched projects being Grade B that had higher-than-average prices.
The office index, meanwhile, was up 0.9 point quarter-on-quarter and seven points year-on-year. The improvement was due to average occupancy increasing three points quarter-on-quarter, the firm said.
There is limited future supply in the central business district (CBD), however the non-CBD will experience fierce competition due to substantial amounts of future supply. “With improved macro-economic conditions, rents should increase in the coming quarters,” it predicted.
According to data of the Ministry of Construction, the value of unsold real estate in Vietnam was 56.29 trillion dong ($2.5 billion) as of October 20, down 56% from early 2013.
Ho Chi Minh City continued to take the lead in terms of real estate inventory, with a value of 11 trillion dong ($489 million), while Hanoi ranked second with 7.3 trillion dong ($324 million).
In Hanoi, there were 1,650 sales in October, up 3% from September and 32% from a year earlier.