Housing prices return to the level of 7 year ago

Housing prices in Vietnam have fallen by up to 50% in many projects to the level in 2006, reports local newswire Tri Thuc Tre citing sources from the Ministry of Construction….

The real estate market in 2013 started to see some positive signs such as market confidence is rising, segments of social housing and completed small apartments with good locations and prices under 15 mil/m2 are still highly demanded, transactions tend to increase.

Majority of the real estate projects have to cut prices by 10% – 30% to lure customers, and more stunningly Sunrise City project by NoVa Real Estate Investment JSC, Everrich 3 project by Phat Dat Company in Ho Chi Minh City recently slashed prices up to 50% compared to their same products during peak time 2 years ago.

Besides, the value of real estate inventories is on the down trend. Real estate inventory in September 2013 was VND 101,889 billion, decreased 3.96% compared to August and down 20.74% compared to March. The value of real estate inventory in two major cities in the country is also declining. In Hanoi, real estate inventory in July 2013 was VND 14, 487 billion, down 15% compared to June. In Ho Chi Minh City, the inventory number in September 2013 was VND 21, 947 billion, down 16.1% compared to August.

Positive signs of the real estate market in the first 3 quarters made ​​the real estate businesses highly hope that the market will prosper in the last 3 months of the year.

“In the last months, the market has received much supporting information as falling interest rates, increasing remittance flows at the end of the year. This is also the best time of the year when most buyers with demand want to find housing, so the market”s liquidity will be further improved.” expected Vu Cuong Quyet, General Manager of Green Land Company, Northern Area.

Recently, in a report on economic, financial and monetary situations in the first 9 months, the National Financial Supervisory Commission (NFSC) says that the money market continues to improve. Real estate market, according to market experts, is sending signals of recovery. This is the reason why the real estate businesses are confident in making decisions to offer sales as well as to start projects.

Specifically, in the recent Real Estate Transaction Session II in Hanoi, more than 3,500 products of 60 enterprises were offered, of which a considerable number of apartments in different projects were sold.
Current best-selling low-price real estate projects such as social housing in North Dang Xa 2 and in North Co Nhue-Chem have prices ranging from VND 9 – 10.8 million/m2. Viglacera Corporation recently announced the selling of low-income housing project Dang Xa II with prices ranging from VND 8.68 million/m2. Muong Thanh Group has just introduced about 600 commercial apartments in CT12 Kim Van – Kim Lu (Hoang Mai, Hanoi) with prices ranging from 10-14.5 million/m2.

Besides best selling low-price apartment projects, pending high-end apartment projects also have transactions. Positive sales are recorded in projects such as Lancaster, Indochina Plaza Hanoi, Hoang Thanh Tower. Several major projects are handed over as Le Van Luong Residentials, Mandarin Garden, Mulberry Lane, Nam Do Complex and Hyundai Hillstate are also in good transactions. - Source: StoxPlus.