Sharp decrease in apartment supply

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SaigonTimes English - 30 month(s) ago 15 readings

Sharp decrease in apartment supply

HCMC – Supply and sales volume of apartments in the first quarter shrank sharply against last year though realtors were trying all possible ways to lure more customers into their projects, said a market research company.

By Dinh Dung - The Saigon Times Daily

Apartment blocks developed by Hoang Anh Gia Lai Co. are seen in HCMC’s Nha Be District. - Photo: Dinh Dung
HCMC – Supply and sales volume of apartments in the first quarter shrank sharply against last year though realtors were trying all possible ways to lure more customers into their projects, said a market research company.

Savills Vietnam reported on Wednesday only two new apartment projects entered the market with some 300 units in the first quarter, down 35% year-on-year.

Meanwhile, apartment sales volume in this quarter is no better than that of the year-ago period with around 9,000 units absorbed, falling by 12% against last year.

Speaking at a briefing on HCMC apartment sales overview organized on Wednesday, Truong An Duong, head of Research and Consultancy Department of Savills Vietnam Ltd in HCMC, said high lending rate plus credit tightening policy have had a great impact on both investors and buyers in the apartment segment.

Several developers suspend their sales and await the market to recover while others are looking for investors to transfer their projects. It is one of the major reasons leading to a reduction in the supply of apartment units.

Duong of Savills Vietnam said buyers are in the hope that prices will drop further. As of now, the most appealing factor to homebuyers is sale prices, so low-cost apartment projects will sell well in the quarters ahead, according to Savills.

Savills expects around 70,000 units from 115 projects will penetrate into the market between now and 2016.

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