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Sales momentum eased in 1Q21 with sales volume down by 12.6% q-o-q, a result of outbreak resurgence and Lunar New Year seasonal effect.

Township Projects Drive Hanoi Market
Photo Credit: Accor
According to JLL 1Q21report, a total of 3,645 units were launched across submarkets in Hanoi, marking a notable rise of 36.6% q-o-q. Major projects in the new supply pool include Panorama Hoang Van Thu in Hoang Mai District, The Zen Park in Vinhomes Ocean Park and Grand Sapphire phase in Vinhomes Smart City, accounting for 56% of the total. 
Apart from this, new launches in the quarter came in a small-scale, ranging from 100 – 300 units each. It was highlighted that most of new supply in the quarter is close to completion as they have been on the market  under pre-launch sales for several quarters but only able to obtain all necessary legal documents to be officially launched in 1Q21.
Investment demand remained muted
Sales momentum eased in 1Q21 with sales volume down by 12.6% q-o-q, a result of outbreak resurgence and Lunar New Year seasonal effect. Investment activities in the premium segment, particularly for buy-to-let purpose, have been adversely affected by the limited foreign arrivals. 
Capital gain investment demand also shrunk as individual investors shifted to landed housing, especially in satellite provinces experiencing land fever, to enjoy a better capital gain given the same investment amount. Yet, the market observed increasing transactions of institutional buyers who look for en-block acquisition or joint venture opportunities in the township projects.
Apartment prices continue to grow, but show signs of slowing
Overall price growth slowed q-o-q, stood at USD 1,555 per sqm in 1Q21. While developers are unlikely to lower primary market prices, zero interest plans, festival offers, and longer payment schedule acted as a catalyst to improve sales. This has particularly been the case for higher end projects since last year and continued in 1Q21 as the market remained relatively unmoved.

DIEP NGUYEN