The capital city's property market, including the condominium market,recovered slightly in the third quarter of 2014 because of positiveeconomic factors.
According to its report on the capital city'sproperty market for the third quarter which it released in Hanoi onOctober 2, CBRE Vietnam Company Ltd., a foreign property serviceprovider, said the country's gross domestic product (GDP) grew by 5.62percent in the first nine months of 2014.
GDP growth, coupledwith accelerating foreign investment, helped to boost manufacturing andexports and helped the country to counter low credit growth, the reportadded.
It quoted the State Bank of Vietnam as saying that by theend of August 2014, credit to the real estate market had expanded by9.85 percent compared with that at the beginning of this year. This ishigher than the 5.82-percent credit growth for the entire economy, aswell as the credit growth for other sectors.
It also cited theANZ-Roy Morgan consumer survey, which showed that domestic consumerconfidence closely followed domestic stock market trends, with bothincreasing since January.
According to the survey, nearly 60percent of respondents expect economic conditions in Vietnam and theirpersonal family situations to improve next year. A recovery in consumerconfidence may give some grounds for optimism in terms of credit growthfor the last three months of the year, the report added.
Apartfrom the recovery in domestic consumer confidence, manufacturingsupported the country's overall positive economic performance andremained the most significant sector for foreign direct investments(FDI), accounting for nearly 70 percent of total FDI. The country's realestate sector ranked second with 1.2 billion USD, or 11 percent oftotal FDI.
"The positive economic factors in the third quarter ofthis year have promoted recovery of the capital city's property market,including the market of condominiums for sale," said Nguyen Hoai An,senior manager of CBRE Vietnam's Hanoi branch.
In the thirdquarter, the condominium market continued to witness active propertylaunches and re-launches even during the so-called "ghost" month which,in the traditional Eastern mindset, is a time for refraining frombusiness activities, the company said.
A total of 2,202condominium units from six projects were added to the supply, and mostof them were from the low-end segment. This pushed the total new supplyof condominiums for the first nine months of this year to 6,829 units,surpassing the 6,745 units launched in the entire 2013.
Meanwhile,medium-end projects were actively re-launched, with massive promotionprogrammes that included interior design packages, car plans anddeferred payment schemes, as most of these projects were alreadycompleted and buyers could move in immediately.
Sales momentumstill remained strong despite the ghost month tradition. An estimated2,550 units were sold in the quarter, a slight increase of approximatelytwo percent compared with that of the last quarter.
Sales formedium-end projects improved by 30 percent while those for low-endprojects declined as buyers moved up the price brackets and favouredcompleted projects. The total number of units sold for the first ninemonths reached 6,550, a 66-percent year-on-year increase.
"Transactionsfor medium-end projects increased because of the high demand in thissegment, and the supply of the medium-end projects has always accountedfor a large volume of the market," An said.
In terms of primarypricing, a slight two- to five-percent year-on-year increase inindicated tag prices were seen in the new launches of some medium- andlow-end projects, especially the completed ones, An noted.
"Althoughpromotions of higher value are on offer, the increase in tag pricesshows that developers were more confident in the market and in thepositioning of their projects," she added.
The prices ofapartments for re-sale likewise witnessed a slight one-percentquarter-on-quarter increase. Re-sale prices improved in most segments,with the strongest seen in medium-end apartments with a 1.8-percentquarter-on-quarter surge. In the first and second quarters, an increasein re-sale price was stronger in the luxury and high-end segments.-VNA
According to its report on the capital city'sproperty market for the third quarter which it released in Hanoi onOctober 2, CBRE Vietnam Company Ltd., a foreign property serviceprovider, said the country's gross domestic product (GDP) grew by 5.62percent in the first nine months of 2014.
GDP growth, coupledwith accelerating foreign investment, helped to boost manufacturing andexports and helped the country to counter low credit growth, the reportadded.
It quoted the State Bank of Vietnam as saying that by theend of August 2014, credit to the real estate market had expanded by9.85 percent compared with that at the beginning of this year. This ishigher than the 5.82-percent credit growth for the entire economy, aswell as the credit growth for other sectors.
It also cited theANZ-Roy Morgan consumer survey, which showed that domestic consumerconfidence closely followed domestic stock market trends, with bothincreasing since January.
According to the survey, nearly 60percent of respondents expect economic conditions in Vietnam and theirpersonal family situations to improve next year. A recovery in consumerconfidence may give some grounds for optimism in terms of credit growthfor the last three months of the year, the report added.
Apartfrom the recovery in domestic consumer confidence, manufacturingsupported the country's overall positive economic performance andremained the most significant sector for foreign direct investments(FDI), accounting for nearly 70 percent of total FDI. The country's realestate sector ranked second with 1.2 billion USD, or 11 percent oftotal FDI.
"The positive economic factors in the third quarter ofthis year have promoted recovery of the capital city's property market,including the market of condominiums for sale," said Nguyen Hoai An,senior manager of CBRE Vietnam's Hanoi branch.
In the thirdquarter, the condominium market continued to witness active propertylaunches and re-launches even during the so-called "ghost" month which,in the traditional Eastern mindset, is a time for refraining frombusiness activities, the company said.
A total of 2,202condominium units from six projects were added to the supply, and mostof them were from the low-end segment. This pushed the total new supplyof condominiums for the first nine months of this year to 6,829 units,surpassing the 6,745 units launched in the entire 2013.
Meanwhile,medium-end projects were actively re-launched, with massive promotionprogrammes that included interior design packages, car plans anddeferred payment schemes, as most of these projects were alreadycompleted and buyers could move in immediately.
Sales momentumstill remained strong despite the ghost month tradition. An estimated2,550 units were sold in the quarter, a slight increase of approximatelytwo percent compared with that of the last quarter.
Sales formedium-end projects improved by 30 percent while those for low-endprojects declined as buyers moved up the price brackets and favouredcompleted projects. The total number of units sold for the first ninemonths reached 6,550, a 66-percent year-on-year increase.
"Transactionsfor medium-end projects increased because of the high demand in thissegment, and the supply of the medium-end projects has always accountedfor a large volume of the market," An said.
In terms of primarypricing, a slight two- to five-percent year-on-year increase inindicated tag prices were seen in the new launches of some medium- andlow-end projects, especially the completed ones, An noted.
"Althoughpromotions of higher value are on offer, the increase in tag pricesshows that developers were more confident in the market and in thepositioning of their projects," she added.
The prices ofapartments for re-sale likewise witnessed a slight one-percentquarter-on-quarter increase. Re-sale prices improved in most segments,with the strongest seen in medium-end apartments with a 1.8-percentquarter-on-quarter surge. In the first and second quarters, an increasein re-sale price was stronger in the luxury and high-end segments.-VNA
