With the government tightening control over permits, Hanoi’s second quarter new apartment supply fell to a seven-year low.
Apartment buildings seen in Hanoi's Cau Giay District. Photo by VnExpress/TuananhVu.
A report by real estate consultancy Jones Lang LaSalle (JLL) says 2,910 apartments were listed for sale in the second quarter, down 36.7% from the first quarter, most of them from subsequent phases of existing projects.
Although there had been expectations that new supply will increase after the social distancing campaign, the government’s tightening of controls relating to granting land use rights and construction licenses for new developments have had an impact, the report says.
Sales showed signs of recovery in the second quarter with 5,298 units sold, up 30.6% from the first quarter, with affordable and mid-end units priced US$1,200-US$1,800 the top performers.
Average price was US$1,493 per square meter, up 4.9% year-on-year.
Between 10,000 and 15,000 units are set to enter the market during the rest of the year, the report estimates.