The condo market in Hanoi City in the third quarter of this year saw transactions and supply slow down compared to the previous three-month period, Savills Vietnam said in a quarterly report released on Wednesday.
Do Thu Hang, head of market research at Savills Vietnam, said the city saw 17,000 apartments offered in the primary market, down a slight 2% versus the previous quarter. There were 13 projects launching additional condos onto the market and 10 others offering new flats with the combined supply of 5,700 units, a 6% decline.
Homebuyers in the capital city bought 5,700 units, dropping 6% from the previous quarter and 15% year-on-year. Medium-end condos posted the highest sales for the sixth consecutive quarter, accounting for 51% of the total sales volume in the period.
Prices of medium-end apartments were stable while those at projects with nearly finished infrastructure saw their prices increase. Besides, transactions of high and low-class apartments also improved, Hang said.
A report of CBRE Vietnam, meanwhile, showed that condo supply in Hanoi in the third quarter tumbled 38% from the same period last year.
Notably, the high-end apartment supply increased strongly with around 3,000 units launched onto the market, making up 45% the total offered. Between January and September, clients bought 14,200 flats with medium-end condos making up nearly 50% of the total sales.
Savills Vietnam estimated the market would have 13,000 more condo units in the last quarter of 2016, mostly from the medium-end segment in Tu Liem, Thanh Xuan, Tay Ho and Hai Ba Trung districts.
Affordable commercial condos have emerged as a new spotlight in Hanoi with most products from Ha Dong, Tu Liem, Thanh Xuan, Hoang Mai and Long Bien districts. The condos cost around US$1,000 per square meter.