Making news

No big changes in Hanoi’s apartment market in 2021: Savills

Hanoi is unlikely to see any major changes in its apartment market this year or experience the short supply as seen in HCM City, Director of Savills Hanoi Matthew Powell has said.

Positive changes have been seen in the quality of various projects, he said, citing the mid-range apartment segment as an example.

Infrastructure development plays a vital role in unleashing supply as it paves the way for the expansion of new projects to neighbouring cities and districts, he noted.

He doesn’t foresee any bubbles in Hanoi’s apartment market this year since the economy is back on the track with demand remaining strong and prices under control.

Hanoi’s infrastructure improved significantly last year. Several new apartment buildings near newly-upgraded or nearly-completed infrastructure projects will fetch relatively higher prices than the market average.

From a different perspective, Do Thu Hang, Senior Director at Savills Hanoi’s Advisory Services, said prices of high-end apartments in the capital are relatively lower than those in its regional peers. Prices depend, however, not only on input costs such as land, infrastructure development, landscapes, and construction, but also supply and demand, she added.

A stable and sustainable real estate market is essential to economic growth, she continued, and once Vietnam’s economy grows strongly, income per capita increases, and the market offers a more diverse range of housing products, there will be greater opportunities for buyers to secure a home./.