REAL ESTATE NUDGES UP IN MAY

Real estate sales in May rose slightly month-on-month, compared with the first quarter this year, according to the Ministry of Construction’s Management Agency for Housing and Real Estate Market.

Successful transactions were mostly in the mid- and hi-end segments, while affordable ones were not sold owing to their limited supply.

During the month, Hà Nội recorded nearly 1,200 successful deals, up by some 14 per cent against last month, raising the five-month volume to about 5,400.

In the southern metropolis HCM City, nearly 1,300 deals were reached, marking a 12 per cent increase. Between January and May, up to 5,870 transactions were successful.

Brokers said successful deals were mostly those located near downtown. Buyers also take into account transport convenience, facilities, apartment design, payment progress and the appreciation value.

In Hà Nội, major sales were predominant in the southwest, such as The Golden Palm in Thanh Xuân, Gelexia Riverside in Hoàng Mai and Gemek Premium in Hà Đông, which have synchronous infrastructure.

Hi-end projects in HCM City also sold well, such as Vinhomes Golden River Ba Son in District 1 and Hà Đô Centrosa Garden in district 10.

Low-rise housing in Lucasta Khang Điền in District 2 and Thủ Thiêm Garden in District 9 saw considerable sales.

Tourism and resort properties in coastal localities, such as Đà Nẵng City, Nha Trang City in central coastal Khánh Hòa Province and Phú Quốc in southern Kiên Giang Province, have become attractive to investors at home and abroad.

Unsold properties nationwide were valued at about VNĐ27.89 trillion (US$1.23 billion), as of late May, down 10 per cent from the end of 2016. The figure declined VNĐ474 billion ($20.87 million) from April.

Unsold land for housing accounted for more than 3.37 million square metres worth VNĐ13.2 trillion ($581.33 million), the biggest proportion of total unsold property value.

It was followed by low-rise housing (3,492 units worth VNĐ7.38 trillion or $325 million), condominium apartments (3,325 units worth VNĐ4.83 trillion or $212.7 million), and land for commercial purposes (648,140 square metres worth VNĐ2.48 trillion or $109.2 million).

Although unsold properties continued to decrease, the rate of decrease slowed down. Most of the unsold land is part of uptown projects lacking infrastructure, the management department said.

The value of unsold real estate in Hà Nội was still higher than in HCM City in May. It was estimated at VNĐ5.45 trillion ($240 million) in Hà Nội and VNĐ5.18 trillion ($228.13 million) in HCM City, down VNĐ23 billion ($1 million) and VNĐ100 billion (4.4 million) from April, respectively.

Source: VIR