Property price drops heavily

A report on property price index by Savills Vietnam showed that house price in Hanoi and Ho Chi Minh Cities has dropped by 27 percent and 22 percent respectively, compared to its highest price in the second quarter of 2011.

Hanoi house price index was at 108.3 points in the first quarter of this year, a drop of 6.4 points compared to the previous quarter, and a drop of 16.7 points year-on-year. The index has declined for seven consecutive quarters by nearly 22 percent after hitting a record high of 138.7 points in the second quarter of 2011.

Average house price in Hanoi, including new projects, has fallen 27 percent since second quarter of 2011 as new housing projects offered low price while existing projects also lowered their price.

Meanwhile, Ho Chi Minh City house price index stood at 89.2 points in the first quarter of this year, down 0.4 points compared to the previous quarter and 3 points year-on-year. Average house price slid by 22 percent but trading volume rose 2 percent compared to previous quarter and 25 percent year-on-year.

By Hoai Tram – Translated by Thuy Doan

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