|High-rise apartment buildings in HCM City's District 2. The increase in the property price index in the country's two major cities is likely to boost residential markets, according to Savills Viet Nam. — VNA/VNS Photo Van Khanh
HA NOI (VNS)— Residential markets in Ha Noi and HCM City would see positive development by the end of the year due to increases in the property price index.
According to Savills Viet Nam Company Ltd, in the second quarter of this year, the Savills property price index (SPPI) for Ha Noi's residential areas was 100.3, marginally up by 0.3 percentage points quarter-on-quarter (QoQ), but down 4.4 percentage points year-on-year (YoY).
"This was a slight QoQ increase after 11 quarters of continuous fall," said Savills Viet Nam.
The inventory ratio declined sharply by 5 percentage points QoQ and 7 percentage points YoY, thanks to the strong performance of the entire market. This quarter, the absorption rate in Ha Noi was 14 per cent, up 6 percentage points QoQ with over 1,900 sold units.
The average price in the second quarter was VND24.68 million ($1,164) per square metre, almost unchanged QoQ. Projects in Hai Ba Trung and Thanh Xuan districts, with quick construction progress and many facilities, had high prices. "Speculation has also revived, indicating the possibility that the market has become more attractive not only to end-users but also investors," said Savills Viet Nam.
Meanwhile, in the same quarter, the residential index for the HCM City market was 89.6, increasing by 0.6 index points QoQ and 0.3 index points YoY.
The overall absorption rate was 16.9 per cent, up a remarkable 6.6 percentage points QoQ and 8.9 percentage points YoY. There was a significant increase in transaction volume and YoY growth with approximately 2,550 absorbed units, up 60 per cent QoQ and 115 per cent YoY, the highest transaction volume in the last three years, it said.
"During the last four quarters, the residential index has increased slightly each quarter," noted Savill Viet Nam. "A number of critical factors, including better financial support, construction commitment from developers and appropriate products targeting buyers, have resulted in higher market liquidity and price improvements."
"These positive signs of a recovering market are expected to continue to increase the QoQ index in the future," it added. — VNS