Hanoi luxury unit sales see little improvement

The luxury apartment market in Hanoi has had successful transactions in some places since early this year, but experts noted that the market has not yet actually recovered.

After a long term of frozen transactions, the market has seen some successful transactions early this year.

Some projects of luxury apartments at prime locations, such as Trung Yen Plaza in Tran Duy Hung Street and Lancester in Nui Truc Street, had many successful transactions with buying prices 200 million VND higher than the asking prices per apartment, and even 500-600 million VND per apartment in Mandarin Garden project, reported the Dau tu Bat dong san (Real Estate Investment) newspaper.

Some other projects at the completion stage have also attracted customers to order buying.

Experts stated that the successful transactions for luxury apartments were due to small area and nice location. Development meant that the market has real demand on luxury apartments.

However, they pointed out that positive development has happened for some products because of small area, nice location and on schedule construction, but complete recovery of the whole luxury apartment market in the capital city has not occurred because the market still has high inventory.

Vu Cuong Quyet, general director of North Green Land Service Joint Stock Company specialising in selling of products at luxury apartment projects, said that the transactions of the luxury apartment market had increased but small-area apartments were sold more easily than large-area apartments.

Tran Nhu Trung, deputy general director of Tan Hoang Minh Group, noted that at present, even with luxury products customers were asking for small-area apartments.

Meanwhile, the luxury apartment market had a low rate of small-area apartments; investors had sold the small-area apartments while still holding a high inventory of luxury apartments with large-area, he pointed out.

Trung added that the key was that the investors of luxury apartment should restructure their products to promote sales.

Truong Chi Kien, deputy general director of Him Lam Thu Do Joint Stock Company, said that those who had sold their luxury apartments had to reduce asking prices for those products during the difficult period of market.

Many luxury apartment projects had high inventory, while investors must cut losses at some projects. The luxury apartment market was still facing difficulty and would be in future, Kien added.

Thirteen apartment projects have been offering cheap prices of around 1 billion VND (47,620 US $) to the Hanoi property market since last month, including popular, medium and luxury classes.

The projects are almost completed or have finished construction on schedule, reported vnmedia online newspaper.

Many apartment projects with prices under 1 billion VND per unit have attracted customers, including VP6 Linh Dam project that offered to the market last week and Vien 103-Van Quan project that is expected to hand over apartments to customers in the third quarter of 2015.

Source: VNA

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