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 property market will see signs of recovery if policy changes are flexible, interest rates are stable and more capital flows into liquid market segments, according to a foreign property firm. However, some property market segments are grappling with price cuts, low absorption and oversupply.
Property services firm CB Richard Ellis Viet Nam predicts that more investors will be able to capitalise on opportunities in Ha Noi's real estate market this year, as last year's tough market conditions ease.