The property market in Hanoi City saw changes in this year’s second quarter with a decline in the number of luxury housing products which were offset by more low- to mid-end ones, according to Savills Vietnam.
Tran Nhu Trung, deputy director of Savills Vietnam, told the Daily that more people cared about budget products this year than last year.
The number of customers caring about apartments with the price range of VND1 billion to VND3 billion was high last year with around 35% while only 5% of customers were interested in apartments of under VND1 billion.
But sharp changes have been seen this year, with up to 20% of customers polled said they were more interested in under-VND1-billion apartments. Apartments of VND1-2 billion still attract the highest number of customers, Trung said.
Regarding the office segment in Hanoi, the average occupancy rate reached 81% in the second quarter, up three percentage points from the previous quarter, and the average leasing price dropped by 7% to around VND464,000 per square meters. This shows that enterprises still find new ways to do business and maintain operations amid current difficulties.
One in every five people in a recent survey of Savills said he was willing to discuss buying houses. It can be seen that people still care about the property market despite current situation, and thus there are many chances for the market to grow.
Besides, the interest rate reduction is not a decisive factor for homebuyers, but a way to support them, according to Savills. It said the number of apartments sold when the interest rate stayed at 12% was higher than when it was reduced to 9%.
Specifically, some projects sold three apartments when the rate was 12%, but with the rate reduced to 9%, the average number of apartments sold was only 1.5 apartments per project.
Therefore, the interest rate reduction has yet to impact customers much. Besides, customers still wait for another rate cut, according to Trung.
According to Nguyen Anh Thu, sales director of Savills, the apartment supply in the year’s second quarter was reduced due to the declining demand. The market also recorded positive changes with the increasing number of transactions, especially in the medium segment.
The Saigon Times Daily