VietNamNet Bridge – The total value of property inventories nationwide by mid-August had dipped by VND14.93 trillion, or 29.34%, against December last year to VND36 trillion (US$1.6 billion), the Vietnam Real Estate Association (VNREA) said.

Homebuyers inspect an apartment project in HCMC in this file photo. The total value of property inventories nationwide by mid-August had dipped 29.34% against December last year to VND36 trillion.

Compared to end-June, it is down by VND1.53 trillion, according to the report VNREA. Residential land accounted for the largest part of real estate inventories, at nearly VND16 trillion or 4.4 million square meters.

Low-rise housing projects came second with 4,951 unsold units worth a total of VND9.89 trillion, followed by condominiums with 4,883 units valued at VND9.4 trillion.

Meanwhile, land for commercial purposes totaled over one million square meters worth VND3.255 trillion.

The property inventory value in HCMC still took the lead in the country with about VND6.6 trillion though it had fallen by over VND3.5 trillion, or 35%, compared to the end of 2015 and by VND216 billion over June.

In Hanoi, unsold properties were worth VND5.82 trillion, down VND923 billion, or nearly 14%, against December last year and VND64 billion compared to June.

Nguyen Ngoc Thanh, vice chairman of VNREA, said real estate inventories have slid more rapidly than in the period prior to 2013 and unsold property is expected to shrink further at a faster rate of 10-15% next year.

Thanh said the real estate market is on a recovery path but still faces some potential destabilizing factors, including a supply and demand imbalance that puts more luxury apartments and resort properties on the market instead of much-needed budget housing.

He cited Minister of Construction Pham Hong Ha as warning at a meeting with property firms in Hanoi earlier this month that if all real estate projects are implemented, the local market would not avoid an oversupply in the high-end segment by the end of this year and early 2017 as the biggest demand still lies in housing with affordable prices.

SGT