Hanoi's residential market is expected to continue to show strong performance in 2016, according to JLL’s report.
The latest report by Jones Lang LaSalle (JLL) Vietnam reveals that demand in the fourth quarter of 2015 was at an all-time high in Hanoi’s residential market. During the quarter, launch activity boosted across the city with new supply reaching 8,800 units, rising 18% quarter-on quarter. Total supply in 2015 hit 28,300 units, exceeding the combined rate of 2013 and 2014.
During the year, many developments recorded well- progressed construction with a total of 23,200 newly-finished units reported at the end of December.
Meanwhile, the all-time high demand led to an 8% increase in transaction volume. Total sales during Q4 reached 8,500 units, around half of which were priced between $1,000 - $1,500 per square meter. The strongest sale growth was seen in Hoang Mai district with 2,100 units. South Tu Liem, Thanh Xuan and Hai Ba Trung districts followed with 1,300 units each.
With regard to price, Hanoi’s residential market saw a rise of 1.8% quarter-on-quarter. Newly-launched projects recorded larger quarterly increases of 3-5% while the high-end segment moved at the fastest pace of 3.2% over the third quarter.
JLL’s report also forecasted high-level supply for this year. Nearly 21,000 units are expected to finish, 85% of which are already found their buyers. The largest proportion will be seen at the mid-end segment.
According to JLL, since improved sentiment attracts more property developers to the residential market, more developments are expected to be launched in the coming time.
For 2016, demand growth will remain positive thanks to continuously strong investor sentiment and the availability of housing credit, while the price uptrend is expected to continue to strengthen.