For the past month, the real estate market in Ho Chi Minh City has witnessed a wave of lowering the price of properties for sale with unprecedented reductions and discounts (44-50% reduction in listed prices).
3 weeks ago, Mr. Nien, an apartment investor in a large urban project in the old District 9, now Thu Duc City, just sold apartments for 1.8 billion VND, a decrease of more than 500 million VND compared to
Meanwhile, in Can Gio district, an investor also finished selling a 600 m2 residential land plot, located in Can Thanh town, with a decrease from 21 billion VND offered for sale in the first quarter of the year to 18 billion VND.
Also in October, an apartment project located in Truong Tho ward, Thu Duc city offered apartments priced around 65 million VND per m2 with a 43% discount program on the property value, if paid in one lump sum (
Similarly, in the past 2 weeks, an urban project in Dong Nai developed by a real estate business based in Ho Chi Minh City, was offered a shophouse for sale by a broker with a preferential rate of up to 50% of the property value.
As revealed by the investor’s broker, this project’s preferential discount packages are only available for a short time with a limited number of products.
Real estate market in the East of Ho Chi Minh City.
Speaking to VnExpress, Mr. Chau, a broker with over 10 years of experience in Ho Chi Minh City and surrounding areas, acknowledged that recent direct and indirect price reduction phenomena are strongly polarizing the market.
According to Mr. Chau, price reduction phenomena only fall into a limited basket of goods or occur in individual groups of investors with cash flow shortages.
`Many people will have the mentality of continuing to keep cash, waiting for prices to decrease further. This mentality can negatively affect the purchasing power of the real estate market during the peak year-end sales season,` Mr. Chau said.
Mr. Tran Khanh Quang, General Director of Viet An Hoa Company, said that the reason why individual investors and developers reduce the selling price or greatly discount real estate compared to the listed price is a lack of cash flow.
Strong discounts or huge discounts are a normal reaction in the context of asset holders wanting to recover cash quickly when market liquidity is quite weak.
`The underground wave of asset price declines may continue to spread to the last months of the year, when difficulties such as lack of capital and cash congestion during stressful periods will put pressure on the market,` Mr. Quang predicted.
Previously, in August, a consumer sentiment index report conducted by Batdongsan website on 1,000 people in the Vietnamese market showed that subjects participating in the real estate market had reduced their level of optimism compared to the previous year.
The report mentions groups of factors: market satisfaction, home buying ability, market situation, home loan interest rates, Government policies and future real estate prices that are showing results.
In a number of recent seminars and discussions on the real estate market, economist Dinh The Hien also repeatedly warned about the prolonged decline in real estate prices.
Mr. Hien said that currently market liquidity is low, it is difficult to profit from real estate at expected prices, so many cases reduce expected profit margins to sell goods.
