Q3 Home Sales in Hanoi Fall 15% y/y on Ghost Month Superstition

Tuan Minh

17:19 30/11/2016

BizLIVE - House sales in Hanoi fell 15% year-on-year in Q3 to 5,660 units due to the seventh Lunar Ghost month while sales in Ho Chi Minh City soared 43%.

Q3 Home Sales in Hanoi Fall 15% y/y on Ghost Month Superstition

Home sales in Hanoi fall in Q3 due to the Ghost month superstition. Photo: vnrea.vn

As many as 5,660 apartments were sold in Hanoi in the July-September quarter, down 6% from the previous quarter and 15% from the same period last year, Savills Vietnam has said in a report.
The primary absorption rate was approximately 33%, down two percentage points (ppts) quarter-on-quarter (q-o-q) and 12 ppts year-on-year (y-o-y) as locals limit purchasing big-value assets during the seventh Lunar Ghost month, which fell in August and is believed to bring bad luck.
Grade B had the most primary sales for the sixth consecutive quarter with 51%. While Grade A absorption decreased eight ppts q-o-q to 20% with 130 sales, and Grade B absorption decreased  six ppts q-o-q to 34% with 2,900 sales, the Grade C performance was positive with absorption increasing eight ppts to 33% with 2,620 sales.
In Q3/2016, the residential index for Hanoi was 105.8, increasing one point q-o-q but decreasing 2.4 points y-o-y with an average selling price of 27.6 million dong ($1,220) per square meters.
Meanwhile, up to 7,500 sales took place in Ho Chi Minh City in the quarter, up 7% q-o-q and 43% y-o-y, the real estate service firm said.
While there were many Grade A and C sales, Grade B sales decreased 12% q-o-q. Grade C sales exceeded 3,700 units, accounting for 50% of quarterly sales. Grade A also performed well with 780 sales, increasing 140% q-o-q and six times those in Hanoi.
Grade C pricing is closer to most Vietnamese purchasers’ affordability and hence captures a larger pool of end-users. Developers offering reasonably priced units typically target areas with inexpensive and readily available land, and improved and planned infrastructure, said Savills.
The residential index in HCM City was 93.5, increasing 0.6 point q-o-q and 4.5 points y-o-y.