Residential index up in Hanoi, but down in HCM City
The residential index rose sharply in Hanoi in the first three months of 2024 but decreased slightly in Ho Chi Minh City, according to a report by property consultancy firm Savills Vietnam.
25 June 2024
The residential index rose sharply in Hanoi in the first three months of 2024 but decreased slightly in Ho Chi Minh City, according to a report by property consultancy firm Savills Vietnam.
The Savills Property Price Index shows that the office segment remained stable in both markets.
Specifically, in Hanoi, the residential index increased by 8 percentage points quarter-on-quarter to 142.5 points. This index has risen by 37% since bottoming at 104.1 in the third quarter of 2019. Prices averaged 44 million VND per sq.m Net Sellable Area (NSA), increasing by 8% quarter-on-quarter.
The absorption reached 41% in the reviewed period, up 15 percentage points quarter-on-quarter and 27 percentage points over the same period last year.
Moving to the office sector, Hanoi’s Grade A office occupancy remained stable at 88%, indicating resilience and potential for future growth. Mega projects had 71% of sales, reflecting continued demand for outlying areas, the agency said.
According to Savills experts, confidence and stability are returning to the real estate market against a background of low bank deposit rates and regulatory reform.
Hanoi’s office index registered 69 points, stable quarter-on-quarter and year-on-year. Grade A occupancy of 88% rose 3 percentage points quarter-on-quarter and 8 percentage points year-on-year. Grade B occupancy of 85% was stable quarter-on-quarter, while Grade C was 91% occupied.
Its Central Business District (CBD) index softened by 1 percentage point year-on-year while the non-CBD index was stable quarter-on-quarter at 81 points, an increase of 1 percentage point year-on-year.
HCM City’s residential index declined by 2 percentage points from the previous quarter to 123, following many project suspensions.
Primary prices in the southern economic hub fell by 3% quarter-on-quarter to 67 million VND per sq.m.
The city’s office index rose by 1 percentage point quarter-on-quarter and 2 percentage points year-on-year to 98 points. The CBD index increased by 1 percentage point over the previous quarter but dipped by 1 percentage point over the same period last year to 107 points.
The occupancy rate slipped by 1 percentage point quarter-on-quarter and 4 percentage points year-on-year to 90% because a new Grade A project, the Nexus, had a low occupancy of 55%./.
Source: https://en.vietnamplus.vn/residential-index-up-in-hanoi-but-down-in-hcm-city-savills-vietnam-post289132.vnp
