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Market for flats to remain depressed
With supply of apartments in HCM City outstripping demand, prices are likely to fall this year, according to Lao Dong newspaper.
In an analysis of the market, it said though apartment prices have fallen by more than 30 per cent from its peak in 2007, they remain high compared to average incomes of people looking to buy them to reside, pushing down demand.
Around 20,000 apartments are expected to hit the market this year.
40,000 other units in hundreds of projects that have already been launched remain unsold.
Besides, many small investors are expected to sell apartments they bought in the last year or two as they fear a further erosion in their value.
In all, around 70,000 units are expected to be available in the market this year.
According to real-estate consultancy Vietree, sales of apartments worth up to VND12 million per square metre in outlying districts like Binh Chanh, Binh Tan, and Thu Duc are better than other segments.
Many developers are now focusing on such projects.
The mid-end segment – costing VND22 million ($1,100) upward – has witnessed an increase in supply but a fall in demand.
High-end apartments priced at $1,500 have few takers.
With demand plunging, many developers are offering promotions like free furniture for homebuyers and 4 per cent interest subsidy on bank loans.
Many high-end projects are cutting prices. A developer in Sai Gon South, for instance, recently sold to a big investor, who bought 5 to 7 apartments, at 70 per cent of the earlier price.
VietRee expected at least one price reduction this year since developers have begun to compete on price.
vietnamnews
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