Housing price drop slowing, but still steep

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The residential price index compiled by property firm Savills slid 0.4 points to 89.2 points in March a deceleration of the continuing slide in housing prices.

The Savills report said the average home sale price has fallen 22 percent since 2009, the year Vietnam's real estate market came to a standstill .

The decrease in price slowed last quarter but a market recovery "might be expected in the near-term," it said, citing the increase in sales by volume of 2 percent during the period and of 25 percent compared to the same period last year.

The number of sold units has been growing for the third straight quarter in March, the London-based firm said.

CBRE, another real estate firm, had earlier said the market would perk up if housing prices fell 30-50 percent. It expected a 10 percent decrease in prices this year, following a 15 percent increase in 2012.

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According to data compiled by news website VnExpress, many developers of high-end projects in Hanoi have slashed prices of home sales further but few units have been sold. Critics complain that the market focuses on costly units for which there is low demand.

An apartment at Keangnam Hanoi Landmark Tower is now priced at US$1,600-2,000 per square meter, down 30-45 percent.

Prices at Sky City Towers have declined by 30 percent since 2011.     

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