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Property prices in HCM City are continuing to fall after a sharp rise during late 2007.

Independent market experts says that prices of properties in the city have dropped by between 50 and 60 per cent compared with last October, when prices began to escalate.

Price of land plots at new residential projects in the Sai Gon South new urban area, and Binh Chanh and Nha Be districts fell by 60 per cent to VND15 million per sq.m.

Vuong Dinh Tue, director of a property brokerage company at District 7’s Sai Gon South new urban area, said the Him Lam-Kenh Te project had the best location in the area but plots were only VND25 million per sq.m, down by 60 per cent compared with October last year.

When prices began to increase quickly between October and early this year, several plots for the Him Lam-Kenh Te project located beside 35-metre roads reached between VND80 and $90 million per sq.m. But they are now down to VND40 million.

Also at Sai Gon South, land prices at the Tan An Huy project dropped from VND60 million per sq.m to between VND21 and 25 million.

Steeper drops in prices occurred in areas that are not considered prime locations.

Land prices at the Phu Xuan residential area, the University Village, Thai Son 1, 2 and Lap Phuc in Nha Be District also fell by 60 per cent to between VND9 and 15 million per sq.m.

Although land prices at District 2’s Thu Thiem new urban area fell more slowly they now stand at only VND18 million per sq.m.

Large volumes of apartments have been for sale at local property brokerage companies but few purchases have been made.

The Van Phat Hung Company offered the most apartments at the Phu My Thuan Building area, with prices ranging between VND7.8 and 13 million per sq.m, down by nearly 50 per cent. However, only a few were sold.

High-end apartment projects also dropped. Prices of apartments at Sai Gon Pearl fell from US$3,500 and 4,500 per sq.m to the current US$2,500 and $2,800.

The office building market is still hot, but shows signs of cooling down.

Except for the A-grade office buildings that have rental prices of US$65 and $70 per sq.m a month, the number of customers wanting to rent offices at B and C-grade buildings has fallen significantly in recent weeks.

Market experts said that most office renters at A-grade office buildings were big companies that are financially strong and can afford high rental prices.

Customers of B- and C-grade office buildings include smaller companies which are trying to cut costs to cope with market fluctuations.

Vietnam Real Estate

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