The supply of high-end apartments has been increasing rapidly in Hanoi and HCMC, but sales have not been brisk.
Tien Phong has quoted analysts warning about a ‘bubble’ in the high-end apartment market segment, with more and more apartment projects put up for sale recently.
From central business to new districts, investors and brokers are struggling to boost sales. High-end apartments are in a two-year slump.
The Hanoi Landmark 51 on Van Phuc Road in Ha Dong district in Hanoi, hoped to be a new center of the Ha Dong area, has not turned out to be very attractive.
According to the Hoang Vuong real estate trading floor, the distributor of the project, only one-third of the project’s total apartments have been sold (at the price of VND23 million per square meter) in the last two years.
The apartments at The Legend on Nguyen Tuan Road of Thanh Xuan district in Hanoi are believed to have competitive price of VND32 million per square meter.
However, The Legend has to compete with dozens of projects with several thousand apartments in the same area.
Bidhomes' The Garden Hill in Nam Tu Liem district has seen sales going slowly after scandals between the investor and clients.
Nguyen Van Dinh, deputy chair of the Vietnam Real Estate Brokers Association, cited a report as saying that there were 18,338 transactions made at the association’s member trading floors in the first quarter of 2017, lower than in the fourth quarter of 2016.
In HCMC, high-end apartment sale have been slow, while the sale of mid-end apartments accounts for the biggest proportion of total transactions. In Hanoi, the transactions have been stable with average-level apartments selling slightly better than mid-end products. In Da Nang City, land was the busiest market segment with more than 1,000 transactions made.
Dinh said in Hanoi, 3,624 apartments, mostly high-end and mid-end ones, with 312,300 square meters were transacted in the first quarter of 2017 via real estate trading floors.
“Hanoi doesn’t have more low-cost apartment projects, while there are very few new house and villa projects,” Dinh explained.
A lot of apartment projects in the western part of Hanoi were for sale in March, including Hanoi Paragon, La Casa Villa, Garden Hill My Dinh, Anland Complex, Xuan Mai Complex, Golden Field My Dinh, Pandora and Park Riverside.
In the southern part of Hanoi, the productsfor sale were mostly mid-end apartments, including Eco Green Tower, Eco-Lake View,Sunshine Palace, Gelexia Reverside, Smile Building and The Golden Star.
At a meeting with the Vietnam Real Estate Association, the Minister of Construction Pham Hong Ha warned that the high-end apartment market segment may see oversupply by mid-2017 if all projects are implemented as planned.