2012-12-31-莱坊-Hanoi_Real_Estate_Highlights_Q2_2013_4页_352kb

Q2/2013 Hanoi Market Summary

Core Content

This report provides an overview of the real estate market in Hanoi during the second quarter of 2013, focusing on the apartment, serviced apartment, and retail sectors. It also includes an outlook for the upcoming quarters and contact details for Knight Frank Vietnam.

Apartment For Sale Market

Market Performance

• The apartment for sale market showed more positive signs compared to previous quarters, with an increase in the number of transactions.
• Buyers are more active in seeking information about apartment projects, but their attitude towards offers (discounts, promotional gifts, flexible finishing options) remains cautious.
• Projects that reduced asking prices often compromised on construction quality, leading buyers to perceive higher hidden costs for furnishings.

Key Areas

• The Western & Southern Districts (Ha Dong, Hoang Mai, Hai Ba Trung) continue to be the main suppliers for low to mid-end apartments.
• Asking prices in these areas remained stable during Q2/2013. Completed or soon-to-be-ready projects saw prices remain the same or increase slightly.
• These projects attracted a good level of interest from buyers with real demand and financial capability, indicating a gradual restoration of buyer confidence.

New Projects

• Several new apartments with asking prices under 1 billion VND were launched, including:
  • CT6 - Dang Xa Urban Area
  • OCT2 - Xuan Phuong Urban Area
  • CT8 - Dai Thanh Apartment Buildings
  • Phuc Thinh Towers
• Asking prices range from VND10 to VND13.6 million (US$478 to US$651)/m².

Serviced Apartment Market

Market Performance

• The market experienced a decrease of 28 units due to the redesign of the Golden Lodge project in Tay Ho District.
• The stock at the end of Q2/2013 was approximately 2,932 units.
• Grade A serviced apartments saw an occupancy rate of 86%, the highest in the previous 12 months.
• Grade B projects had an occupancy rate of 93%, up 1% from the previous quarter.
• Grade C apartments had an occupancy rate of 91%, with an average rent of VND281,000 (US$13.4)/m²/month.

High Occupancy Areas

• Hanoi West area (Tu Liem and Cau Giay Districts) received more tenant inquiries than the previous quarter.
• Three-bedroom Grade A units are in high demand due to reasonable pricing and limited supply.
• Hanoi Club and Sofitel Plaza in Tay Ho District were 100% occupied at the end of Q2/2013.
• The average rent for Grade A serviced apartments increased by 2.6% q-o-q to VND657,000 (US$31.4)/m²/month.

Outlook

• The serviced apartment market is expected to see more activity in Q3/2013, as it is a peak season.
• Three new projects and 20 renovated Grade A units are expected to be launched by the end of 2013.

Retail Market

Market Performance

• Lotte Mart announced plans to open its first supermarket in Hanoi in Q1/2014, acquiring 4 floors (approx. 20,000 m²) in Mipec Mall.
• Ho Guom Plaza in Ha Dong District leased 60% of its retail space, with a total area of 23,000 m² expected upon completion in Q4/2013.
• Existing tenants include Citimart, Tran Anh Electronic Supermarket, Lotteria, and a cinema complex.
• Trang Tien Plaza in Hoan Kiem District reopened in Q2/2013 after a redesign and refurbishment, attracting prestigious tenants like Louis Vuitton.

Outlook

• Vincom Mega Mall Times City, a new retail development by Vingroup, is expected to attract significant interest with over 200 brand names registering for leasing.
• The mall, located in Hai Ba Trung District, is planned to open in Q4/2013 and will cover an area of 200,000 m², including a hypermarket, retail shops, entertainment, and dining areas.

Office Market

Market Performance

• The office market saw slightly more activity in Q2/2013, but remained less busy than the same period in 2012.
• New buildings in the CBD generated more inquiries, particularly CornerStone Building, which completed several transactions ranging from 100 m² to 2,000 m².
• The building achieved an occupancy rate of over 45% within three months of completion.
• Other buildings like ACB Building and Capital Building (formerly 19-12 Building) also attracted tenants through competitive leasing strategies.

Supply and Demand

• The mid-town area saw less popularity, but new supply from Song Hong Park View added 7,800 m² to the market.
• VCCI Tower will add 28,000 m² in Q3/2013.
• The West area still showed healthy demand, although not at the same level as 2012.
• The completion of PVI Tower in the next quarter increased competition.

Outlook

• Q3/2013 is expected to see more office activity, particularly in the CBD.
• The new institutional quality building, Coalimex, located in Hoan Kiem, will add over 5,000 m² of office space.
• The building features column-free floor plates, efficient parking, and a green design with a glass façade, making it attractive to tenants.
• It is crucial for new office buildings to be completed on schedule to avoid increasing competition and capture leasing opportunities.

Contact Information

Knight Frank Vietnam Company Limited

• Head Office:
  Floor 5, 40 Phan Boi Chau, Cua Nam Ward, Hoan Kiem District, Hanoi
  Phone: +844 3941 1638
  Fax: +844 3941 1639
  Email: enquiries@vn.knightfrank.com

• Ho Chi Minh City Office:
  Floor 7, 8 Nguyen Hue, Ben Nghe Ward, District 1, HCMC
  Phone: +848 3822 6777
  Fax: +848 3827 7856
  Email: enquiries@vn.knightfrank.com

Disclaimer

Knight Frank Consultancy & Research provides strategic advice and forecasts to a wide range of clients. This report is for general information only and does not necessarily represent the views of Knight Frank on specific properties or projects. Reproduction of this report is allowed with proper reference to Knight Frank Research.