A decade ago, FDI inflow to the real estate market only made up 10% of the total FDI in Vietnam. It later grew continuously between 2015 and 2017, compared to the non-stop decline of the 2010-2013 period. As of July 2018, the sector had held onto its spot of second place in terms of FDI attraction, with 704 valid projects worth US$56.3 billion.
In Hanoi, there were nearly 5,000 apartments offered for sale from 24 projects in the third quarter of 2018, down 25% from the previous quarter, Nguyen Hoai An, Director of Professional Services at CBRE Vietnam’s Hanoi branch, told a press briefing on the capital city’s real estate market from July to September. About 4,300 units were sold, down 27%, An added.
|Real estate makes up 23% of Vietnam’s FDI injection.
She blamed the falling sales on the “Ghost Month”, which is the seventh month in the lunar calendar. People often avoid making important decisions like home purchase during the month as it is believed to be a period of bad luck.
Besides, many people have been waiting for the launches of big projects at the end of this year that will give them more choices, she noted. Despite the home sales slowdown, the number of reservations at those large projects was on the rise, proving that the property market still drew buyers’ attention, she explained.
According to the CBRE, among the hottest property projects expected to be launched in the last three months are middle-end Vincity Ocean Park and Vincity Tay Mo Dai Mo. Supplies from the middle segment were forecast to continue dominating the market, accounting for more than 60 percent of the total launches in Hanoi this year.
Projects launched in this quarter are mostly located in the western and northern parts of the city, representing over 70 percent of the total new units. Notably, developers are likely to find their way to the outskirts of the capital city with various new projects in the districts of Thanh Tri and Hoai Duc.
Prices of condominium apartments in Hanoi are expected to pick up 3% – 5% in the remaining months. Dismissing some concerns over a “bubble” in the condo segment, An said the increase will not be significant, so the market will still see a healthy development.VNA