Luxury Hanoi apartment sales eclipse low-end transactions in Q2: CBRE

Once a dominant segment in the market, low-end apartments in Hanoi accounted for only 20 percent of total real estate transactions in the second quarter of 2016.

In the second quarter, 6,100 new units were launched by 17 projects in Hanoi, an increase 19 percent from the last quarter but a drop of 23 percent from the same period last year, according to a recent report by CBRE Vietnam.

Apartment sales in Vietnam’s capital continued to indicate positive signs, with 4,860 apartments sold in Q2, climbing 20 percent compared to the last quarter but falling 7.2 percent on-year.

It comes as a surprise that sales of luxury apartments have reached certain positive levels. In the first six months, total apartment sales reached 8,900 units, of which the mid-end segment accounted for more than 40 percent.

The number of low-end apartment transactions accounted for just 20 percent, compared to 26 percent in 2015, 33 percent in 2014, and 49 percent in 2013.

Prices have risen from four to six percent compared to the same period last year in the high-end and middle-end sectors, especially luxury projects located in prime locations with high-profile investors. Apartments in the mid-end segment in convenient locations are attracting a large number of buyers and prices are likely to go up.

The leading property service provider underlined that in the latter half of 2016, new and re-launched projects will go on the market and the sales growth rate could equal 2015. CBRE Vietnam evaluated that demand for accommodation and investment will dictate what the market does.