Hanoi real estate price expected to rise in next quarter: JLL

JLL expected an abundant supply in Hanoi real estate market in the next two quarters. 

According to JLL, the housing supply of in Hanoi in Q2 - 2016 was quite high. Newly-launched supply reached 8323 units, down 16% quarter-on-quarter but up 29% year-on-year. In particular, the affordable segment and medium segment accounted for 85% of total supply. The two districts of Southern Tu Liem and Hoang Mai led the market with around 65% of total new supply in the second quarter.

JLL’s report said real estate price in Hanoi maintained the upward trend. Asking price rose faster on the primary market than it was on secondary market. The number of projects with price increase of 1% quarterly accounted for more than 85% of total primary supply. Even completed projects with high level of inventory also recorded a slight increase in selling price. 

Sales of the low-price segments hit 7,625 units, accounting for over 90% of total and equal to sales in the first quarter. 

On the secondary market, price continued to rise but the increase was somewhat lower than figures of previous quarters. There was a slowdown in the price upturn of the premium and luxury segment. Uptrend could be seen more clearly in suburban districts.  

JLL's research also expected an abundant supply in the next two quarters. In Q3 and Q4, the newly-completed supply is estimated at 14,000 units, mainly from the affordable sand medium segment. Meanwhile, new supply of the premium and luxury segment is forecasted to be limited. 

The report stated: "Demand is forecasted to continue to rise in the next two quarters, with many developments expected from the affordable and medium segment. The price will also keep rising."