Falling real estate prices are actually the reason many developershave survived the downturn, said a report sent to the National Assemblyby the Ministry of Construction. Insights from the Vietnam InvestmentReview.
“Apartment prices have greatly reduced comparedto 2008-2010. Most projects have seen a decrease of 10 to 30 percent,some have fallen by half,” read the report, which also pointed out thatsmall, ready-to-use apartments costing less than 15 million VND (715USD) per square metre were now the most desired by buyers.
The MoC also reported that the current total value of unsoldapartments throughout the country stands at 4.8 billion USD thanks toincreasing purchases of small and finished apartments. The figure in thefirst six months of the year was 20 percent higher.
“There arestill challenges the market must face, but we are looking at an upswingin the first nine months of this year as confidence slowly improves.Many transactions for social housing and small apartments have beenconducted successfully,” the report said.
Compared to theprevious two years, the number of transactions is still low but for thesmall apartment segment, liquidity is high and transactions are on theup.
The report also indicated that even more and more projectswere finished and ready for sale, unsold properties in the two majorcities of Hanoi and Ho Chi Minh City were decreasing.
In Hanoi,unsold real estates were estimated at 14.5 trillion VND (690 millionUSD) in July this year, down 15 percent compared with June.
In Ho Chi Minh City unsold properties were valued at just over 1 billion USD, down 16.1 percent.
These results prompted the MoC to announce that the national housingdevelopment strategy has achieved positive initial results.
Reducing prices have been the top priority for developers to survive thecurrent slump. Many have also offered incentives to buyers.
According to CBRE Vietnam, in the third quarter this year residentialprojects were more cautious with only 1,900 units released, 6 percentdown against the same period last year.
Primary prices alsocontinued to go down, with some developers lowering prices by 10 percentfrom previous launches and up to 50 percent on new launches.
The number of units put up for sale in Hanoi in the third quarter of this year totalled 1,900 units.
In Ho Chi Minh City unit launches continued to rise this year with1,726 units in the third quarter, increasing 45.8 percent on quarter and11.6 percent on year.
The majority of this supply was in theaffordable segment, making up 74.7 percent of new launches. High-endcame in second with 19.3 percent and mid-end last with 6 percent.
Developers’ faith in the market was rewarded as new launches sawnotable buyer activity, according to CBRE, which also confirmed thatprices in Ho Chi Minh City continued to fall, but at marginal rates.-VNA
“Apartment prices have greatly reduced comparedto 2008-2010. Most projects have seen a decrease of 10 to 30 percent,some have fallen by half,” read the report, which also pointed out thatsmall, ready-to-use apartments costing less than 15 million VND (715USD) per square metre were now the most desired by buyers.
The MoC also reported that the current total value of unsoldapartments throughout the country stands at 4.8 billion USD thanks toincreasing purchases of small and finished apartments. The figure in thefirst six months of the year was 20 percent higher.
“There arestill challenges the market must face, but we are looking at an upswingin the first nine months of this year as confidence slowly improves.Many transactions for social housing and small apartments have beenconducted successfully,” the report said.
Compared to theprevious two years, the number of transactions is still low but for thesmall apartment segment, liquidity is high and transactions are on theup.
The report also indicated that even more and more projectswere finished and ready for sale, unsold properties in the two majorcities of Hanoi and Ho Chi Minh City were decreasing.
In Hanoi,unsold real estates were estimated at 14.5 trillion VND (690 millionUSD) in July this year, down 15 percent compared with June.
In Ho Chi Minh City unsold properties were valued at just over 1 billion USD, down 16.1 percent.
These results prompted the MoC to announce that the national housingdevelopment strategy has achieved positive initial results.
Reducing prices have been the top priority for developers to survive thecurrent slump. Many have also offered incentives to buyers.
According to CBRE Vietnam, in the third quarter this year residentialprojects were more cautious with only 1,900 units released, 6 percentdown against the same period last year.
Primary prices alsocontinued to go down, with some developers lowering prices by 10 percentfrom previous launches and up to 50 percent on new launches.
The number of units put up for sale in Hanoi in the third quarter of this year totalled 1,900 units.
In Ho Chi Minh City unit launches continued to rise this year with1,726 units in the third quarter, increasing 45.8 percent on quarter and11.6 percent on year.
The majority of this supply was in theaffordable segment, making up 74.7 percent of new launches. High-endcame in second with 19.3 percent and mid-end last with 6 percent.
Developers’ faith in the market was rewarded as new launches sawnotable buyer activity, according to CBRE, which also confirmed thatprices in Ho Chi Minh City continued to fall, but at marginal rates.-VNA
