The domestic market saw strong development in the landed property segment in the third quarter of this year, according to CBRE Vietnam’s report on the Hanoi property market. (Photo: VNA)

Hanoi (VNS/VNA) – The domestic market saw strong development in the landed property segment in the third quarter of this year, according to CBRE Vietnam’s report on the Hanoi property market.

Releasing the report at a press conference by CBRE Vietnam on October 4 in Hanoi, Nguyen Hoai An, Director of CBRE Vietnam’s Hanoi branch, said the landed property market was continuing to thrive in the western region of the city. New projects sold around the inner city achieved good sales. Prices on the secondary market continued to increase slightly.

In the third quarter of this year, there were 646 newly launched units from four projects, including Terra Hao Nam, Hanoi Garden City, Phoenix Garden Dan Phuong and Hanssip Phu Xuyen. Terra Hao Nam and Hanoi Garden City, with a smaller scale and decent distance to the city centre, have recorded positive sales performance.

In terms of sales, 512 units from the registered projects sold in the third quarter, a significant improvement compared to about 220 units in the second quarter of this year.

Secondary prices of villas in the third quarter rose by 2 percent quarter on quarter to 3,600 USD per square metre, including construction costs. Most projects experiencing an increase in sales price were in western districts such as Ha Dong and Nam Tu Liem.

In the coming quarters, there will be more large-scale projects launched, including those launching for the first time and the next phases of large-scale urban projects in areas such as Long Bien, Dai Mo, Tay Mo and Dong Anh, according to CBRE Vietnam.

“Villas and landed property in the centre of Hanoi will continue to be attractive towards the end of this year,” An said. “This segment will have high liquidity in the market due to the small supply of new villas and landed property products in good locations.”

At present, many villa and landed property projects have recorded a slight increase compared to the first half of the year, but the market would see sustainable development without a bubble, she said.

Expert Dang Hung Vo said local people prefer villas and landed property because those products have high liquidity and potential in gaining high profit while the owners could control the design of their property products.

Apartment building fires and deterioration in buildings constructed 10-20 years ago have caused many customers to change their preference to villas and landed property, Nguyen Quoc Hiep, Deputy Director of the Hung Vuong Housing and Construction Joint Stock Company, was quoted by reatimes.vn as saying.

According to investors, in the period from the end of this year until early 2019, many large investors will offer villas and landed property products at projects in Hanoi. Meanwhile, some projects in neighboring provinces such as Vinh Phuc, Bac Ninh and Thai Nguyen have also seen successful transactions for such property products.

Hiep said landed property products in suburban areas of Hanoi would continue to attract investors by the end of this year. Of which, the Vincity projects in Gia Lam and Hoai Duc districts would be launched, changing the property market in suburban areas.

Meanwhile, in the third quarter, there were nearly 5,000 condominium units launched from 24 projects in Hanoi, down by 24 percent quarter on quarter, according to CBRE Vietnam.

Launched projects in this quarter are mostly located in the west and south of the city, together accounting for more than 70 percent of total newly launched units. Hanoi’s residential market has shown a clear trend of decentralisation with new projects in residential areas such as Thanh Tri and Hoai Duc districts.

In terms of sales performance, 4,300 units were sold during the third quarter, down by 27 percent quarter on quarter. This time of the year traditionally sees a slump in sales.

Buyers are still waiting for new projects to be launched at the end of the year before making decisions, meaning slower sales performance.

Although there has been a decrease in the number of sold units in this quarter, the fact that many projects, which will be launched in the last quarter, have received a large number of bookings shows good market sentiment. The projects which are about to be launched at the end of the year are those that developers have carefully researched and surveyed the market for a long time.-VNS/VNA