New apartment supply in Hanoi plunges to eight-year low
HCMC – Hanoi City saw new apartment supply tumbling to an eight-year low last year, but the average primary home price remained high, at about VND47 million per square meter, up 15% year-on-year, according to Savills Vietnam’s 2022 report.
In 2022, a mere 12,640 new apartments were put up for sale on the Hanoi market, with grade B units holding the lion’s share at 83%.
The handover volume dropped in the city last year. Only 10,000 apartments were handed over to homebuyers in Hanoi. From 2020 to 2024, handovers are projected to decrease by 36% per year.
The primary supply of 20,333 units in the fourth quarter of 2022 dropped by 6% year-on-year. There were 2,890 home transactions, down 30% year-on-year.
According to the report, since 2018, average primary prices have increased by 11% per year.
In 2023, 19 new launches and the next phases of two projects will add 15,800 units to the Hanoi market. Housing developers are seeking residential land in neighboring provinces to meet the housing demands of Hanoi, according to the report.
“Most developers are still pursuing new investment opportunities. Amended laws are expected to give the housing market room to grow,” said Do Thu Hang, senior director, advisory services at Savills Hanoi.
As for retail space, demand exceeded supply in 2022, according to the report.
Stock growth has averaged 4% per annum for the past five years. However, with no additions, the stock of 1.7 million square meters of the net leasable area increased by 4% year-on-year.
In 2022, the take-up of 63,200 square meters of net leasable area climbed 364% year-on-year. Retail podiums represented the highest proportion at 62%, followed by shopping centers at 29% and department stores at 9%.
“Vietnam has attracted many new fashion and cosmetics brands from China, Hong Kong, Singapore, South Korea, Japan and Indonesia. This will boost retail presence in 2023,” said a representative of Savills Hanoi.