2012-12-31-莱坊-Hanoi_Real_Estate_Highlights_Q1_2013_4页_396kb

Hanoi Real Estate Market Research Q1/2013 Snapshot

Market Performance

• Overall Liquidity: Low due to the "wait and see" attitude post-stimulus and expectation of further price declines.
• District Comparison: West districts (especially Ha Dong) had the highest transaction rates.
• New Projects: Around 11 new projects launched, totaling 4,200 units with prices ranging from VND13.5 million to VND22.2 million/m².

Price Trends

• Residential: Competitively priced in the West, especially after discount initiatives. Prices slightly declined but developers anticipate minimal change due to potential rescue packages.
• Serviced Apartments: Q1 saw increased leasing activity, with Grade A occupancy at 75% (up 3% q-o-q) and grade B/C at 92%.

Government Actions

• Resolution 2/NQ-CP enacted on 7 Jan 2013 to reduce bad debt and boost liquidity via refinancing loans at fixed 6% for 3 years.
• State Bank draft circular supports lending of VND30 trillion through banks to boost development.
• Focus on restructuring supply to meet market demand, especially in the West.

Outlook

• Gradual recovery expected by Q3/2013, driven by new high-quality projects in the West (e.g., Westlake Area), which saw a 15% rent decrease due to shifting demand.
• Increased retail space planned until 2030, creating future supply pressure.
• SMEs delaying office relocations due to fiscal completion, but migration to the West continues for better amenities and competitive rates.

Retail & Office Updates

• Retail demand shifted west, causing vacancy in CBD, with projects like Mipec Mall undergoing repositioning.
• New Grade A projects like Coalimex Building and Indochina Plaza (IPH) are aiming to attract international tenants.
• Office market sluggish due to holidays but shows signs of improvement with relocation trends to the West.

Conclusion

The market is slow but recovering; new supply in the West is key. Government interventions and refinance support aim to balance supply-demand, but full market revival depends on policy outcomes and project quality.