Residential Property Prices in HCM City Rise: Savills

Tuan Minh

14:11 17/02/2017

BizLIVE - Prices of residential real estate in Ho Chi Minh City went up at the end of 2016 while those in Hanoi declined.

Residential Property Prices in HCM City Rise: Savills

A view of high-end Phu My Hung urban zone. Photo: VNA

The Residential Property Price Index for Ho Chi Minh City picked up one point quarter-on-quarter (q-o-q) and three points year-on-year (y-o-y) to 93 in the fourth quarter of 2016 (Q4/2016), Savills Vietnam has said in a report.
The absorption rate was 23%, increasing four percentage points (ppts) q-o-q and one ppt y-o-y, says the report.
Residential property sales in the city reached a six-year high of 10,200 in Q4/2016, up 36% q-o-q and 32% y-o-y. While Grade C continued to perform well, accounting for 49% of total sales, Grade B had over 4,700 sales, a significant increase of 60% q-o-q and 6% y-o-y.
The apartment market will receive a large future supply in the next two years, especially from the mid to high-end segment. Consequently, the residential index is expected to show increases over the next few quarters, the property service company forecast.
Meanwhile, the Residential Index for Hanoi was 104.3, decreasing 1.5 points q-o-q and 3.9 points y-o-y, due to secondary price decreases in the wake of new supply. Since mid-2014, the Residential Index has remained relatively stable.
The primary absorption rate of the city was approximately 31%, down two ppts q-o-q and nine ppts y-o-y.
There were approximately 6,730 primary sales this quarter, increasing 19% q-o-q and 5% y-o-y. Grade B had the most primary sales for the seventh consecutive quarter, at approximately 2,940 units, accounting for a 44% share. Grade A absorption increased significantly with the highest proportion since 2011, registering approximately 1,590 sales.
The real estate market should remain stable despite a large future supply, with a focus on the mid-end and affordable housing segments, mainly from Hoang Mai, Thanh Xuan, Tu Liem and Ha Dong districts, the firm noted.