Hanoi: Wet Season Dampens Hotel Performance, Condo Sales Fall

Tuan Minh

16:14 13/10/2016

BizLIVE - Average occupancy of hotels in Hanoi went down in the third quarter of this year due to wet season while sales apartments fell.

Hanoi: Wet Season Dampens Hotel Performance, Condo Sales Fall

The total stock of the villa and townhouse market in Hanoi went up in Q3/2016. Photo: Thanh Nien

Rainy season in the quarter ending September pulled average occupancy of hotels in Hanoi by two percentage points (ppts) from the previous quarter, but the ratio was up four ppts year-on-year (y-o-y), Savills Vietnam has said in a report.
The average room rate (ARR), meanwhile, increased quarter-on-quarter (q-o-q) and 12%y-o-y.
Hotel stock decreased 5.2% q-o-q with the revocation of nine hotels’ three-star ratings by the tourism authority but relatively stable in comparison with the same period last year. One four-star project will add more than 200 rooms in 2017.
According to the municipal statistics office, international tourist arrivals to the city reached 1.4 million in third quarter (Q3) of this year and 2.9 million in the nine months through September, increasing 28% y-o-y.
In the apartment market, the total primary stock was 17,000 units, decreasing 2% q-o-q but increasing 16% y-o-y. Thirteen projects with fresh launches and ten newly launched projects supplied 5,700 units, decreasing 6% q-o-q.
Around 5,700 transactions were recorded, down 6% q-o-q and 15% y-o-y. Grade B recorded the highest primary sales volume for the sixth consecutive quarter, accounting for 51% of total sales.
In Q4/2016, over 13,000 units will enter the market, much of which will be Grade B and come from Tu Liem, Thanh Xuan, Tay Ho and Hai Ba Trung districts.
The villa and townhouse market also underperformed, with sales down 10% q-o-q to 241 units, of which 64% were townhouses.
The total stock of this market was approximately 33,500 dwellings, up 3% q-o-q and 10% y-o-y. Three new projects and the fresh launch of one existing project supplied 209 dwellings. Ha Dong district remained the top supplier with a 26% share.
In Q4/2016, more than 800 dwellings are expected to be launched, many from Ha Dong district.
Savills Vietnam added that the total retail stock was approximately 1.2 million square meters (sq.m), up 3% q-o-q and 23% y-o-y due to the entry of two new retail podiums with approximately 32,800 sq.m.
The average ground floor rent decreased across all retail segments. Average occupancy increased 1.9 ppts q-o-q but decreased 2.7 ppts y-o-y.
“Strong competition between domestic and foreign retailers forced some projects to renovate and restructure floor plans,” the real estate services firm noted.



Từ khóa: Hanoi, Savills Vietnam