Hanoi market has lower new condo supply but higher sold units in Q3 hinh anh 1An apartment complex near Nhat Tan Bridge in Hanoi (Photo: VNA)

Hanoi (VNA) - The Hanoi condominium market had lower new supply volume in the third quarter of this year (Q3 2020), while the sold units have exceeded new launches, according to CBRE Vietnam's report on the Hanoi property market in Q3 2020.

In Q3 2020, there were about 3,500 units launched in Hanoi leading to a total new launch during the first nine months of this year of around 10,700 units – down 61 percent year on year (y-o-y).

In terms of segments, there were only mid-end and affordable products launched in Q3 2020, accounting for  51 percent and 49 percent of total new launches, respectively. Most projects launched during this quarter are small to medium projects located outside Ring Road No 3.

Meanwhile, about 4,200 apartments were sold during the quarter, 20 percent higher than the new launch volume, although there were some delays in sales and marketing activities due to the second wave of COVID-19 in late July and early August.

Selling prices in the primary market in Q3 2020 averaged 1,325 USD per sq.m (excluding VAT and maintenance fees), down by 4 percent y-o-y due to the higher share of new launches in the affordable segment.

Moving forwards, the level of new launches is expected to hover at around 14,000 - 16,000 units in 2020, allowing sales absorption to catch up. The primary pricing is forecast to remain flat in Q4 2020 since new supply is heavily dominated by the mid-end segment and higher competition in this segment.

Nguyen Hoai An, director of Hanoi Branch, CBRE Vietnam, said: “The Hanoi condominium market has been heavily dominated by local, Hanoi-based developers. We expect this to change in the near future, as an increasing number of foreign developers, and Vietnamese Southern-based developers are expected to invest in new projects in Hanoi.”/.