Prices for new apartments are rising, while prices in the secondary market are falling

Luxury apartments accounted for almost 78 percent of new supply in the second quarter, according to consulting firm DKRA Vietnam, leading to an increase in the average price compared to the first quarter.

Another consultancy, CBRE Vietnam, said prices rose 8.6% to $2,455 per square meter.

Real estate platform Batdongsan attributed the rise to higher construction costs.

Apartments priced under VND40 million ($1,710) have died out, the report said.

However, everything was different in the secondary market: both sales and prices fell.

A VnExpress survey showed prices for resold apartments in Thu Duc and nearby communities fell 5 to 10 percent as investors tried to shed their credit burden.

Many of them were sold at cost and even at losses of up to 10 percent due to a lack of cash, said the director of a real estate company in the city of Thu Duc.

Demand has also fallen and prices could fall further as banks tighten lending to developers and buyers, he added.

Vo Hong Thang, head of research and development at DKRA Vietnam, said rising inflation and interest rates are the two main reasons for the downturn.

Pham Ngoc Thien Thanh, Deputy Director of CBRE Vietnam, also pointed to the lengthy approval process and mismatch between supply and demand as problems facing the market.

https://vnexpress.net/