The property market has shown a number of positive signs in the second quarter of this year as reflected in quarterly reports from real estate companies, but difficulties still remain.

Savills Vietnam has reported that office renting greatly increased in the quarter to nearly 41,000sq.m with the leased area of Grade A buildings in the west area continuing on a sharp upward take-up trend to reach 9,600sq.m.

Regarding hotels, the average number of occupied rooms in the second quarter was 4,200, a year on year increase of 9 percent.

Seven projects supplying 1,300 hotel rooms were expected to enter the market this year.

The serviced apartment sector rose again in the quarter as the total number of leased units has reached 2,600, up 1.6 percent year on year.

For apartment sales, the number of projects selling raw-construction units had increased because developers wanted to reduce the total price per unit to attract end users, said Savillis.

According to Cushman & Wakefield, rental prices for Grade A office space in Hanoi remain stable for the mentioned quarter but Grade A offices saw a 2 percent drop quarter on quarter.

The serviced apartment sector retained high occupancy rates and even witnessed an increase in rents during the second quarter.

However, the oversupply of apartments in Hanoi would influence the serviced-apartment market as more of this stock was converted. There are about 10,000 new apartment units in the city and low absorption rates continue.

Cushman & Wakefield said the real estate market has been in decline in Vietnam for sometimes now.

CB Richard Ellis Vietnam (CBRE) revealed that the continued trend of price decline in property market till the year end, saying that home buyers remained cautious and still expected further falls.

Some 17 projects will join the retail market by the year end with a total area of nearly 500,000sq.m, creating huge pressure on the market. Meanwhile many existing trade centres were in difficulty and halting operations for restructuring or conversion to other uses, according to Savills.-VNA