Hanoi apartments took their strongest price drop in 2012’s second quarter during the last four years.
According to CBRE Vietnam, apartment prices have fallen since 2011’s second quarter and plummeted in 2012’s second quarter.
“The 2011 and 2012 crisis is even worse than the 2008 crisis in terms of length and magnitude,” said CBRE executive director Richard Leech. If the primary prices continued at a low level with 100 per cent of newly-launched units priced below $1,500 per square metre, the secondary market’s asking prices were at its largest quarter-on-quarter drop since its straight fall from 2011’s second quarter.
Apartment projects in Ho Chi Minh City are back in business with a series of projects coming onto the market thanks to banks’ easing credit.
“Falling deposit interests and still high dwelling demands are potential signals for Ho Chi Minh City’s realty market,” said Hung Thinh Land deputy general director Nguyen Duy Minh.
On June 18, prestigious property developer and trader Tan Binh announced to put 60 apartments with 67 square metres each of the second phase Tan Phu district's Tan Mai apartment project, into the market.
The real estate market] has contributed an important part to ensuring economic growth and social security, but besides the positive results there remain a number of weak points,” Minister of Construction Nguyen Hong Quan said in an interview with VnEconomy News.
2012 will be a good year for real estate investors despite the difficulties on the horizon, said real estate service firm CBRE.
Vietnam is seeing a high demand for low cost housing but property price rises are one of the biggest obstacles to this fast growing sector, according to analysts.