Housing price index continues to decline

Savills Vietnam has recently announced the Savills Property Price Index (SPPI)--a tool for tracking quarterly price index of different property markets, for the second quarter of this year.

Housing price index in Ho Chi Minh City rose 0.2 percent quarter-on-quarter.(Photo: SGGP)

Accordingly, housing price index in Ho Chi Minh City rose marginally by 0.2 percent compared to the previous quarter, but dropped 3 points year-on-year. The number of transactions surged 59 percent year-on-year. The number of sold houses showed rise for four consecutive quarters. Savills noted that the residential price index had gradually increased since the second quarter last year.

As for Hanoi City, housing price index continued to fall 3.6 points to 104.4 points. Thus, the index has plummeted by roughly 25 percent in eight straight quarters. Average price in the market has dropped 30 percent since second quarter of 2011 due to the entry of new projects as well as price reductions on existing projects.

After rising continuously in 2012, the inventory has reduced in the first two quarters of the year with a decrease of 2 points in second quarter sending inventory to 93 percent.

By Khoi Nguyen – Translated by Thuy Doan

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