2017 is already shaping up to be a good year for Vietnam’s capital.
Vietnam’s economy continues to show signs of strength. So far this year the country’s GDP has grown by 5.1 percent. Despite this remaining at a healthy level, it is a decrease of 0.4 if compared to the same quarter of 2016. This is a direct result of the mining industry that is slowing down and the shrinking of operations in the country by electronics giant Samsung.
However foreign direct investment remains buoyant. The annual growth rates of 73 percent is dominated by Korea who contributes a total of 48 percent. Plus the tourism sector is performing well. International visitors to Hanoi were recorded at 1.3 million according to the Hanoi Statistics Office. An increase of 10 percent year-on-year.
At the same time the property market is still seeing movement. Figures released from real estate firm Savills reveal that the apartment market has seen significant supply which is giving investors choice. The first quarter of this year has recorded a reduction in sales by 2 percent. However if compared to the previous year, apartment sales have increased by 16 percent.
The villa and townhouse market has also witnessed an increase in supply. 3 percent quarter-on-quarter and 14 percent year-on-year. Three new projects in Hanoi were launched that racked up the numbers to 1,005 dwellings. Villas accounted for 58 percent of these however actual sales were split equally between villas and townhouses. Despite this being a slowdown of 24 percent from the previous quarter, the villa and townhouse segment is fairing well as overall transaction numbers have increased 40 percent from the previous year. Much of this new supply is dominated in the east of the city and for the next quarter of this year, an anticipated 350 dwellings will add to the supply.
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