Bright spot in year-end supply
Savills' Q3/2024 market report said that in the first 9 months of 2024, Hanoi recorded more than 12,000 newly launched apartments, mainly concentrated in the West and East of the capital. The purchasing power of the market is very positive when the total number of apartments sold in both the primary and secondary markets in 9 months reached 17,000 units. The third quarter dominated transactions with about 7,000 units, up 35% quarter-on-quarter and 226% year-on-year. Notably, the West "dominated" the market, accounting for 63% of the primary supply and 78% of the number of transactions in the quarter.
According to Savills, Hanoi is expected to welcome 9,700 new apartments in the last quarter of the year, of which 88% will come from the next phases of large projects, mainly concentrated in the metropolitan areas in the West and East of the city. Thus, the West and East of Hanoi continue to establish their position as the kings in terms of supply and transactions.
Vinhomes Smart City continues to be the center of the Western real estate market at the end of the year when the last supply of apartments in this metropolis is officially introduced to the market. It is known that the last supply comes from The Victoria subdivision and the last 2 buildings of The Sola Park subdivision, The Avenue and The Sky. Previously, the first 3 buildings of The Sola Park became a phenomenon in the real estate market when they quickly "sold out" after a few days of opening for sale. Not far behind, The Victoria also "sold out" just a short time after being officially launched. Therefore, the last 2 buildings of The Sola Park are about to be launched, promising to repeat that miracle.
Apartments continue to lead the market
Apartments have been the market leader in recent years, especially during the period when real estate has faced many challenges. It is the challenges of the market that have highlighted the sustainable values of this product line. Aiming at real housing needs, aiming at end users, meeting liquidity, cash flow and price increase potential - the above factors are a solid foundation for the rise and sublimation of apartments in both the buying and selling and renting markets.
In addition, a difficult reality of Hanoi real estate that has lasted for many years is the serious scarcity of new products due to legal procedures and approvals. Market demand is constantly growing with the rapid urbanization. Low supply and high demand make good products of reputable and branded investors become the focus of the market when launched, creating strong attraction for cash flow for real estate and investment.
According to Savills data, although the primary supply of apartments in the third quarter improved, it still decreased by 47% compared to the same period last year. This fact continues to push up house prices in Hanoi. The primary selling price is currently at VND69 million/m2, up 6% compared to the previous quarter and 28% compared to the same period last year. In the secondary market, the average price of apartments in the third quarter of 2024 is VND51 million/m2, up 10% compared to the previous quarter and 41% compared to last year. The average secondary price has increased by 17% per year since 2020.
At present, the number of investors with projects for sale can be counted on the fingers of one hand. Investors and real buyers are forced to “sift the sand” to find valuable products. Therefore, the final supply from The Victoria subdivision and the last two buildings of The Sola Park subdivision, The Avenue and The Sky, are expected to become the epicenter of the real estate market at the end of the year.
With prime locations in the metropolis, the appeal of The Victoria and The Sola Park is not only due to meeting the right and exact market needs but also comes from the distinct elements in the product concept of each project. It is the unique product concept that creates ideal, high-quality living spaces with synchronization and methodical planning, utilities and services that make The Victoria and The Sola Park attract residents, and are the basis for creating elite and cohesive residential communities.
In addition, MIK Group's reputation and brand have been affirmed through many large projects across the S-shaped strip of land, which is a guarantee for the sustainable peace of mind of each customer when deciding to spend money. The final source of goods in the Western metropolis is the right answer to the problem of buying and investing for smart customers.
