In downtown HCMC apartment prices fall by 40%

Chau, a veteran real estate broker, said many owners are willing to take such a big cut since they need cash.

They include apartments at The Grand Manhattan on Co Giang Road. Built by Novaland, the project has three 39-story towers with over 1,400 units.

However, this is not a widespread occurrence since supply in the luxury segment in District 1 is thin in both the primary and secondary markets.

The Grand Manhattan apartments on Co Giang Road, District 1, HCMC. Photo by VnExpress/Chau Long

Tran Khanh Quang, CEO of Viet An Hoa Real Estate Investment Joint Stock Company, said more and more people are selling properties in HCMC’s suburbs and neighboring provinces at a loss of 30-50%, but in the city’s prime locations few are willing to take a hit of more than 30%.

Only some cash-strapped buyers are forced to sell at bigger losses, he said.

According to commercial real estate services provider Cushman & Wakefield, there was no new launch of luxury apartments in District 1 in the first quarter.

But over 1,900 luxury apartments from past launches remain for sale and their prices decreased by 1% year-on-year.

In the primary market, luxury apartments cost US$4,500-10,000 per square meter, according to Cushman & Wakefield.

Real estate consultancy CBRE Vietnam categorized apartments in the city into five segments: super luxury costing $12,000 per square meter, luxury at $4,000-12,000, high-end at $2,000-4,000, mid-priced at $1,000-2,000, and affordable at up to $1,000.