Sale of apartments soars by 70%

Sales of apartments, villas and townhouses were up in the first quarter of this year, according to experts.

Savills Viet Nam, at the launch of its quarterly report in Ha Noi this week, said that apartments had good sales, with about 70 per cent of stock being sold, despite a doubling in available property compared with the previous quarter.

Meanwhile, average secondary asking prices increased 3 per cent compared with the fourth quarter of 2010. In which, Long Bien achieved the strongest increase at around 8.5 per cent, followed by Gia Lam at 6 per cent against the last quarter of 2010, the report said.

CB Richard Ellis Ltd Company (CBRE), another real estate market research firm, also released its quarterly report this week echoing Savills’ optimism.

CBRE said sale rates in the high-end segment improved. Newly-launched projects sold well, partly due to new market techniques.

For instance, developers had offered discount of up to 8 per cent to special group buyers.

This had encouraged buyers to take advantage of preferential offers, with advantages including index-linking contract value to the CPI (consumer price index).

Apartments had continued to prove lucrative as speculators had shifted investments due to the devaluation of the dong and restrictions on the trade of gold bullion, said the CBRE.

However, buyers would be more selective by aggressively comparing prices against other factors such as location, reputation, quality and project facilities.

Savills also saw some indicators that revealed increasing demand for apartments for sale in the coming time because more than half of the total population is under 30 and average incomes of Ha Noi residents has continued to increase.

The market showed potential demand among medium and low-income earners for apartments, as land prices were too high, said Savills.

More than 20 projects

HCM City is expected to launch more than 20 apartment projects containing 15,000 units in the second and third quarterss, according to figures from Savills Viet Nam.

About the same number of units are currently available, making the market fiercely competitive for developers, according to Truong An Duong, the company’s head of research in HCM City.

He added that around 24,000 units were planned to be completed between 2012 and 2014.

“This requires developers to have a suitable strategy to react to the rapidly changing market,” he said.

Several developers have already made a move by lowing their prices, including Dai Thanh, which has cut prices for its project in Tan Phu District to VND12.7 million (US$605) per square metre for a complete unit, from the previous VND14.9 million ($709.5) for a raw one.

Another developer, ThuDuc-House, has also lowered prices by VND500,000 ($23.8) for each square metre of its project in Thu Duc District.

In the first quarter, around 3,500 apartments were sold, up 16 per cent from the previous quarter’s figure. However, a large number of them went to wholesale investors rather than end users.

From VietNamNews

Newer Articles
  • Residential market sluggish in Da Nang
  • Realty unsalable, trading floors shutting down in masses
  • Realty firms post unsatisfactory business results in Q1
  • Hanoi approves land right auction for 62 new projects
  • Capital-thirsty property developers forced to sell
  • FPT to kick off construction on Da Nang technology and urban zone soon
  • $1.6bn Golden Hills closer to reality
Older Articles
  • $1.6bn Golden Hills closer to reality
  • Hanoi to crack down on illicit trading of apartments
  • Door opened to Everville project
  • ECI Land invests 1.7tr dong in Everville project
  • Japan-styled Zen resort makes debut
  • Vincom breaks ground on hospital
  • Real estate market in 2011 to depend much on government policies: Experts
  • Life Resorts stops management of property in Danang
  • Challenges ahead for office market
  • World Bank funds housing for 10,000
Latest News
  • Vietnamese software firms consider Japan as the major market
  • Despite problems, 2011 FDI spending equals 2010
  • EVNTelecom asks for government’s approval to sell 12pct stake for VTC
  • Vietnamese enterprises expanding into international markets
  • Ernst & Young Vietnam role to be examined
  • Vietnamese firms invest over $24.5b in foreign countries as of July-end
  • Vietnam Insurance Market: Keeping Double-digit Growth
  • Vietnam’s economy looks grim with ADB’s forecast
  • Ministry rejects import-export tax changes
  • Government okays anti-dumping suit against US
For Foreigners
  • Adb: policy tightening will lower inflation
  • HSBC, Barclays to advise Vietinbank’s planned overseas dollar bond sale
  • Vietnam govt to service debt for troubled cement projects
  • Calm heads prevail as the forex market to remain cool
  • Further fiscal & monetary tightening in coming months
  • IMF cuts Vietnam’s inflation forecast to 9.5pct in 2011
  • Vietnam’s dong has best week since 1997 after dollar rates curb
  • Vietnam tightens control over state-bank partnership
  • Foreign investors list problems in Vietnam
  • Foreign invested enterprises complain about customs procedures

BusinessTradeVietnamGovernmentFDIWorld economyVietnamese PartyEconomyEconomicMarketState managementPrime MinisterHCM cityHanoiHo Chi MinhCPIAsianWorldAmericaEuropeNguyen Tan DungHau GiangMekong DeltariceStandingMekongCambodiausajapanchinakoreaLai ChauHoa BinhHoi AnChu LaiQuang NamDa nangCan thoSon LaPower PlantMinistry of IndustryDung QuatOilSingaporeThailandMalaysiaIndonesiaLaosVietnameseFDI capitalinvestorsforeign investorNetherlandsUSservicetransportationinfrastructuretourismVNPostExpressSpainGoldTra fishexportcontractstouristMiddle AreaConstructionShipbuildingIndustryCompanyIndustrial ZonebudgetDong NaiBinh DuongVung TauTay NinhBinh PhuocTay NinhLong AnTien GiangUS investorshydropower plantQuang NinhNha TrangStock ExchangeHNXIndexcapitalAgricultureDong ThapAn GiangExport-Processing ZoneYen BaiLao CaiLai ChauDien BienSon LaHoa BinhPhu ThoHa GiangTuyen QuangBac KanLang SonCao BangmanufacturersAseanRussiadevelopmentAviationinflationHong KongAmericanChamber of CommerceSeafoodODAWBIMFFEDAsia-PacificAssociationcountriesEuropeanmarine economyThanh HoaNghe AnNam DinhHa TinhPhu LýVinh PhucBac NinhBac GiangHung YenHai DuongBinh ThuanBinh PhuocLam DongGia LaiKon tumQuang NgaiQuang BinhQuang TriNinh ThuanCa MauBac LieuSoc TrangTra VinhKien GiangVinh LongBen TreincomespoliciesLawassetsNatural GasBuildingstatisticsstrategyDa Latmineral exploitationprocessingindustrieselectricitywatersupplyEnterprisesforestryfisherycommunicationsreal estatetransportationCorruptionbauxiteSecuritiesInsuranceBankFinanceAccountgoodsTrade BalancecoffeeCoalfestivalHa NamNinh BinhHoa BinhUniversityArtsBooktravelVietnam VisaVisaPagodaCommitteePeople's CommitteeVinashincompaniesHoa PhatHSBCACBvietcombankvietinbank

Copyright 2010 © 
Powered by: CIINS Design by: