Over a half of primary condo units on sales

Up to 53% of primary apartments are put on sales, CB Richard Ellis announced at a press meeting on Hanoi real estate market held on April 11.

This is the first time since the property fever in 2007, the condo segment sees such a massive discount wave in the primary market with 53% of condos are offered at below US$1,000 per square meter in attractive locations like My Dinh, Dinh Cong and Cau Giay urban area.

Meanwhile, in the secondary market, the offering price continues falling 11% against the first quarter of 2011 to average at US$1,760 per sqm.

According to CBRE report on Hanoi condo market in Q1, with only 1,100 apartments being newly offered in the market, customers as well as enterprises and investors were very hesitant, waiting and seeing the movements of market.

New projects mainly are located in the districts of Hoang Mai, Long Bien, Cau Giay and Tu Liem.

In 2012, CRBE forecasted, the city’s condo supply will be around 20,000 units in line with current plans of investors. But, the fact will be adjusted if the market remains gloomy like present.

Actually, at this time, a lot of investors lengthen the project progress, even stop construction. This situation reflected the downward in business morality and prestige of investors in some projects, Mr Richard Leech, Managing Director of CBRE Vietnam said, adding that many customers learned a lot of experience lessons with high costs. They [customers] are losing more their faith in the capacity of completion of projects, especially construction speed and work quality.

He also assessed, the Vietnamese economy has signalled to recover so the discount trend of primary apartment segment will slow down. - Source: Vietbiz24