Hanoi's housing market last quarter continued to reflect the huge demand for affordable homes, with low-cost apartments remaining the key player, property consultancy Savills reported.
The absorption rate of over 10,800 apartments dropped 1 percentage point from the previous quarter to 4 percent.
The low-end segment accounted for nearly 80 percent of units sold, and luxury apartments for only 3 percent.
During the quarter mid-end developers made their only price cut last year, which, along with several cuts in the other two segments, brought down the average apartment price to VND12-16 million (US$576-768) per square meter.
But Savills had expected the price to decline even further.
Hanoi has 60,100 units in 110 apartment projects that will enter the market in the near future.
Savills said the villa/townhouse segment is targeting those with genuine demand as prices fell by more than 30 percent
Buyers have been pulling out due to a downward trend in prices and low liquidity, it said.
Cau Giay, Tay Ho, Tu Liem, and Hoang Mai Districts are the most expensive places with prices ranging from $3,900 to $7,680 for a villa and $5,700-7,780 for a townhouse.
More villas and townhouses are being built in 76 projects scattered across the city's 14 districts.
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