HA NOI — The housing market in Ha Noi has remained frozen even as prices have fallen, according to real estate companies.
The director of the Thai Minh Quang property trading centre said that many investors have found it impossible to sell their products even at floor prices.
Phan Xuan Can, chairman of Sohovietnam Property and Consultancy Company, affirmed that apartment prices had fallen sharply since the end of 2011, adding high interest rates had put pressure on many secondary investors.
According to Can, investors accepted the need to cut down their profits.
For example, he said, one investor slashed his price by more than VND4 billion (US$190,000) in order to sell his property in the Bac An Khanh Project.
Another secondary investor in the Bao Son Dragon Project decreased his ask by more than VND5 billion ($238,000).
Can suggested that many investors had been forced to sell their houses and apartments in the centre of the city to pay off their loans.
However, only houses priced under VND5 billion had success on the market. The more expensive ones cannot be sold, said Do Quang Huy, an official from the Hapulico real estate trading floor.
According to a report by CB Richard Ellis Viet Nam, last year's fourth quarter saw the largest overall price reduction in condominiums for sale.
The report said that the secondary asking price for condominiums in Q4 has come down in all segments, accounting for almost the entire annual reduction.
During that time, prices were down by 3.5 over the previous quarter and down by 4 per cent in comparison with the same time last year.
Last year was the first time that the market saw a declining supply at the end of a year.
CBRE's experts forecast that the market would be warmer in the middle of this year when the investors cannot suffer more loss and buyers cannot wait for lower prices. — VNS