Ha Noi: Low-priced apartments in front of high-end apartments

05/10/2018   Viewed: 26
In 2018, Hanoi apartment market continues to repeat the old scenario is the low-end, medium and high-end segment overwhelm the supply. This is a statement from CBRE representatives in the recent press conference quarter III / 2018.

Cheap low-priced apartments, medium and high-end apartments overwhelm the supply

CBRE's report shows that in the first three quarters of 2018, the supply of low-end apartments was very low compared to the middle and high end apartments in Hanoi. Nguyen Hoai An, CBRE Hanoi Director emphasized: "The proportion of new low-priced houses offered in the market in the third quarter did not increase compared to the previous quarters. Supply is still concentrated in the high-end and high-end segments, and low-cost housing accounts for less than 20%. "

According to Ms. An, the demand for cheap housing is huge, but the development of this segment has many challenges. The fact that cheap housing can not be located in the city center. To invest in affordable housing in locations far from the center, it is necessary to have supporting infrastructure. Because only good infrastructure, people are comfortable buying, peace of mind and the new investor enough confidence and bravest to invest.
 
nha gia re
Demand for affordable housing is huge, but the development of this segment has many challenges. Artwork: Internet

While low-end apartments are quite low, the market is overwhelmed by the supply of medium and high end apartments. According to CBRE, this scenario will be repeated in the last quarter of 2018. The mid-end segment will maintain its leading position - expected to account for more than 60% of total supply offered in 2018 when mid- Great as Vincity Ocean Park, Vincity Tay Mo Dai Mo (project name has not been officially announced and can be changed) is offered.

These are the largest scale projects in the market this year and are considered by many experts to have an impact on the overall picture of the real estate market. The impact here is not on the project scale but on the absorption capacity of the market and the main problem is time. "We also saw new large urban projects such as Ecopark, Ciputra. These projects provide the market with a wide range of products and also take a long time to develop, shape and evaluate the impact, perhaps 10-20 years. "

Retail Market: Increased supply, reduced rents
In the third quarter of 2018, Dong Da - Ba Dinh area and the West area continued to occupy the Hanoi retail market with over 60% of the total leased area. Also in the quarter, the Hanoi retail market recorded a new project, Discovery Complex, with more than 20,000 square meters of commercial space in the West (Cau Giay). By the end of 2018, the market supply has increased significantly, reaching nearly 940,000 sqm of rental space. Thus, in 2018, the supply of retail space is expected to increase 18.5% year on year, much higher than the growth rate from 2015-2017 (about 6.5% per year).

Under pressure from increased supply, the non-CBD area has adjusted rents. Dong Da - Ba Dinh and western areas where retail space is concentrated mainly with asking price of 29 USD / m2 / month, down 1.3% / year. Similarly, rents in other non-CBD locations tended to decrease to US $ 24.1 / sq m / month, down 2.4% y / y. CBRE Hanoi's CEO said that vacancy in non-CBD areas is increasing year by year due to the pressure of new supply.

However, the central area (Hoan Kiem and northern Hai Ba Trung district) has almost no commercial center vacancy rate and the rent remains the highest in the market, approximately $ 100 / m2 / month. 
In addition, foreign brands continue to boost market share in Hanoi. Specifically, H & M has opened its second store in Hanoi, also located in the commercial center. Therefore, competition in the market is expected to increase, prompting domestic retailers to improve their products and sales. In the entertainment industry, cinema in Hanoi is still dominated by foreign companies such as CGV, which makes up about 60% of cinemas in Hanoi. In addition, the market share of Hanoi supermarkets is dominated by domestic supermarkets, led by Vinmart and Fivimart.
Collect

Total notes of this article: 0 in 0 rating

Click on stars to rate this article
You did not use the site, Click here to remain logged. Timeout: 60 second