Minh Nguyen Research Manager Hanoi at Cushman and Wakefield Vietnam refers to the latest research data and predicts that villa market in Hanoi in the last quarter of 2012 will still feel downward pressures.
During our research activities it was noted that many operational projects and those that have handed-over the residence to customers see very few move in and occupy. This can be explained by our observations and market feedback which sees the lack of surrounding infrastructure such as shopping centers, school and clinics etc as a key market driver in this sector. Another reason is that many buyers appear to be investors and speculators and use the purchase as a substitute for a bank term deposits. Ha Dong, Hoai Duc and Me Linh see a largest number of villas left vacant for the above reasons.
Developers and secondary investors in our opinion see the only exit strategy at this time is to reduce prices and even sell at a lost. Hoai Duc and Me Linh saw the strongest fall among all districts. The number of transactions in this sector was once again very low.
There are around 19,000 villas from 86 projects scattered over 16 districts, of which Me Linh has the highest market share of 19% of the total supply, followed by Tay Ho, Ha Dong and Hoai Duc with 17% each.
Market research sees the average age group is between 35-50 years of age and generally high end income earners and have a management or senior management job; they have older children and generally have a motor car. Design trends are an important factor and in Hanoi our research sees the buyers in Hanoi prefer a shell product to then complete them to personal taste. The research team at CW Hanoi have an extensive track record in this sector and some of the latest Villa data in the market and have collected buyer trends and buyer behaviour statistics that our clients take advantage of when making design decisions. When asked what is the best way to develop Villas, Leon always says “do your research, in a market like this it may need to be monthly to be on top of buyer trends and also what your competitors are doing” Mr. Cheneval sees tough times ahead in this sector and developers need to be fully informed as buyers are now even more demanding.