Apartment prices in northern Vietnam's primary market have increased for the 10th quarter in a row despite rising coronavirus concerns, a Savills report says.
A view of Cau Giay District in Hanoi. Photo by Shutterstock/TuananhVu.
The real estate consultancy says the average price of apartments in the primary market was $1,625 per square meters in Q2, a 7 percent increase from the previous quarter and an 11 percent increase year-on-year.
Grade B apartments had the highest price increase of 13 percent year-on-year.
Limited supply is a main factor for the increase, the report says. The availability of new apartments in the second quarter was the lowest in five years, at around 1,600 units – a 60 percent decrease from the previous quarter, and a 74 decrease year-on-year.
Given the concerns about Vietnam's fourth Covid-19 wave, investors are also refraining from putting more apartments on the market, the report says.
The supply in the primary market experienced a 13 percent drop from the previous quarter and a 27 percent drop year-on-year, to only 21,300 apartments.
Other factors in the increasing prices include improved infrastructure, higher development standards and rising steel prices, the report says.
Since 2017, the prices of apartments in primary markets have increased by 14 percent a year in Hanoi's Cau Giay District, where several high-quality healthcare and education facilities are located. The corresponding figure in Long Bien District is 12 percent, given its proximity to downtown areas and recent infrastructural improvements, including several interconnected traffic routes.
Other Hanoi districts like Dong Da, Thanh Xuan and Tu Liem have also seen apartment prices increase.