Mid, high-end segments dominate real estate sales in Q1

The agency said the mid- and high-end products still accounted for the majority of new launches while there is a limited supply of low-cost housing projects.

Vietnam’s leading property developer, Vingroup, unveiled the affordable housing project Vincity on the outskirt areas of Hanoi last year in order to satisfy the increasing demand from local mid- and low-income buyers in the near future.

About 1,000 successful transactions of mid- and high-end apartments were reported in Hanoi in March, up 17.6 percent from a month earlier, most of which are from projects Vinhomes Skylake Pham Hung in Cau Giay district, Gelexia Riverside and Sunshine Palace in Hoang Mai district, and Vinhomes Thang Long in Hoai Duc district.

Ho Chi Minh City had about 1,100 mid- and high-range units sold in March, an increase of 22 percent from February.

There have been few new launches in the southern economic hub since the beginning of this year, thus most of the supply relied on those that went on sale in 2016. High-end projects with big sales last month included Charmington La Pointe in District 10, Jamona Apartment in District 7, Lakeview City in District 2, and Vinhomes Centre Park Tan Cang in Binh Thanh district.

Nguyen Tran Nam, Chairman of the Vietnam National Real Estate Association, has warned of an imbalance between supply and demand in the country’s housing market. The demand for low-cost apartments is very high but it is not easy for people to find those sold less than VND20 million per sqm. 

There are still a poor real estate database and limited market forecast, he said, adding that these were also behind the real estate crisis from 2009-2013.