Prices in Hanoi’s overstocked apartment-for-sale market have dropped some more in early 2013, with mid-level products asking in the range of VND15-17 million ($700 to $800) per square metre.
The new prices continue a slide from the $1,000-$1,200 per sqm range in 2011, and the forecast is for the trend to continue. According to CBRE Vietnam, the price of apartment would be reduced by a further 10 per cent in 2013, after the reduction of around 15 per cent in 2012.
Market conditions have real estate experts suggesting that 2013 will provide a good opportunity for new buyers, especially at the lower-priced options. Nguyen Duc Ngoc, marketing director of The Costa Nha Trang, predicted that potential customers’ attitudes would shift from “wait and see” to “choose and buy,” especially products in mid-level and low-end sectors.
Nguyen Huu Cuong, chairman of the Hanoi Real Estate Club, predicted that many buyers would be hunting for the VND1 billion ($47,000) apartment this year. Dang Hung Vo, a real estate expert commented that 2013 would be a year for low price products, especially the price from VND7 to 11 million ($333 to $523).
Vo said even the current price had been downward it was still much higher than the real affordability of the end-users. “Therefore finding ways to reduce further price is a must for developers otherwise they cannot increase the liquidation,” Vo said.
“Many developers are restructuring their projects in order to reduce the value of every unit, to make the product become affordable to customers,” he added.
Mid-level products that adjusted prices include Rainbow Linh Dam with price of VND16.5 million ($785), Hattoco with VND15 million ($700), Unimax Hadong with VND13.5 million ($640) and Xuan Mai tower with 14 million ($666).
Hai Phat company just last week announced to sell the apartments in Phuc Thinh Tower, located in Hoai Duc district of Hanoi, with the price of only VND13 ($419) to 14 million ($666) per square metre.
Ngoc, marketing director of The Costa Nha Trang, said that 2013 would be the last chance for end-users and speculators to buy their products at low prices.
“I think that the market would become warmer because foreign investors are increasing their investment in real estate by merger and acquisition activities and the price would be changed much when deals are finished,” Ngoc said.
Bich Ngoc
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