Mid-priced and cleared land segments are believed to be the main products of Hanoi’s real estate market in 2019, according to local experts.
A project in Hanoi’s outlying district of Dan Phuong. Photo: Vneconomy
Vu Cuong Quyet, general director of Northern Green Land Service and Real Estate JSC, told newswire VnExpress that mid-range products priced at between VND16 million (US$683) and VND25 million (US$1,068) per square meter (sq.m) will draw homebuyers whose purpose is for living.
Quyet attributed the trend to limited number of newly-marketed mid-end projects this year, adding that new supply of apartments in all segments is expected to be lower than in 2018. Therefore, the market will mainly consume inventory of the projects already introduced, he noted.
His analysis points out that the highest demand will be for affordable housing priced under VND15 million (US$644)/sq.m. However, options in this segment are very few and located far from the city’s center.
Regarding the liquidity, experts from the Vietnam Real Estate Brokerage Association believe that products costing less than VND25 million (US$1,068)/sq.m will still lead the market.
Pham Duc Toan, general director of EZ Vietnam Real Estate Investment and Development JSC, said that cleared land and landed houses on the edge of Hanoi will still be a big investment channel in the context that investment in resorts is slowing down and the provincial land market direction remains unclear.
Toan added that supply of land and villas in adjacent areas will be limited this year, and mainly in suburban districts.
According to real estate service firm CBRE, Hanoi’s supply in 2019 will mainly come from projects launched in Gia Lam, Nam Tu Liem, Ha Dong, and Dong Anh, which are not inner-city districts. Half of the new supply is located in the western part of the city.
The experts also attributed investors’ psychology to the market trend in 2019, saying that cleared land and landed houses which are mostly outside the belt road No.3 with reasonable prices will be suitable for investment.
Quyet said that projects with more affordable prices in urban districts of Ha Dong and Nam Tu Liem, and outlying districts of Hoai Duc, Dong Anh, and Thanh Tri will diversify the market pool for 2019.
Meanwhile, Nguyen Van Dinh, general secretary of the Real Estate Brokerage Association, told VnExpress that land plots will explode more strongly than in 2018 with projects in districts like Ha Dong, Gia Lam, and Dong Anh with prices up more than 10% compared to 2018.