Hanoi (VNS/VNA) – Vietnam witnessed positive development in the real estatemarket in 2017 with increased transactions of apartments and reduction in realestate inventory.

Accordingto the National Financial Supervision Commission’s report on financial marketsin 2017, the market did not see much change in property prices last year.

Pricesmainly increased in the segments of high- and mid-end apartments. Prices roseby 3-10 percent for some high-end apartment projects in the urban area havingconvenient location, synchronous infrastructure, construction as per scheduleand reputable investors, as well as attractive sales and promotional policies.

Theprice of high-end apartments increased at the fastest rate of 7-10 percent,while it rose 5-7 percent for mid-end apartments and 3-5 percent for affordableapartments.

Inthe domestic market in 2017, trading volume increased significantly comparedwith 2016, the report noted. The high- and mid-end apartment segments witnessedthe highest trading volume. The number of successful transactions was estimatedto reach 68,000 units.

Meanwhile,the report said real estate inventory of Vietnam was some 25.7 trillion VND, areduction of 17 percent compared with December 2016. Hanoi and HCM Citycontinued to be the cities with the largest real estate inventories, accountingfor 40 percent of the country’s total inventory.

In2017, the credit flowing into real estate trading and construction activitiesdecreased slightly, accounting for 15.8 percent of total credit.

Theend of 2017 marked a positive development in Hanoi’s condominium market,according to CBRE Vietnam’s quarterly report on Hanoi property market, releasedon January 4 in Hanoi.

Inthe last quarter, the market welcomed a record 9,500 new units, bringing 2017’stotal fresh supply to 35,000 units, a year-on-year increase of 16 percent. Thiswas also the highest number of new apartments entering the market in a yearsince the past five years. Fresh supply was spread across all districts in thecity.

Themarket saw improved infrastructure and expansion of the out-of-centre area,while two new apartment projects were launched in Dong Anh district for thefirst time. The mid-end and affordable segments continued to dominate themarket with a total 80 percent of the new supply in 2017.

TheHanoi property market had more than 23,000 successful transactions in 2017, ayear-on-year surge of 12 percent.

Someprojects were not located in favourable positions but still achieved goodbusiness results because of reasonable investment for the development ofproducts and improved design of these products, along with providing convenientservices for residents.

Thisshowed that buyers paid more attention to quality property products, and,therefore, there was higher demand, CBRE Vietnam said.

In2017, primary prices in the market increased slightly because of the highsupply of new apartments and change in demand in the affordable segment, itsaid. Average selling price from developers stood at US$1,344 per sq.m, ayear-on-year reduction of 2.4 percent.

CBREVietnam said in the future, positive development of the macro economy wouldcontinue to support the property market in general and the condominium marketin particular.

Withthe development of the market and future supply in almost all areas of thecity, the developers of apartment products will be under pressure toprofessionalise the sales team and perfect marketing activities for highercompetitive ability and revenue, it said.

2018 is expected to see a sharp difference indevelopment among segments, with high-end projects being developed innear-urban locations, while developers in the lower segments will improve theirproducts further to deal with competitive pressure.-VNA