In the real estate market, an issue currently receiving much attention is the price movement of apartments when most of the demand for this segment is actual demand.
Outlook of Vietnam real estate market nowadays
Under pressure on liquidity, which tends to be low, investors or secondary investors have turned to reduce the selling price, and the reduction can be up to 50%. In other words, the selling price of apartments is falling back to the actual value.
Recorded at the trading floor batdongsan.com.vn, the number of apartments for sale is being adjusted to reduce the selling price by 10-15%, equivalent to a decrease of 200-300 million VND/unit.
In November, the southern provinces only Ho Chi Minh City and Binh Duong sold new projects and sold 213 units, equaling 11% compared to the same period last year. Regarding the primary market, projects offer a payment discount policy of up to 40 – 50% of the value. As for secondary liquidity, the selling price decreased by 3-5% compared to the previous month.
Forecast Vietnam real estate market in 2023, insiders said
A DKRA Vietnam representative said the decrease in liquidity was the continuous increase in selling prices in the past five years. The supply of apartments dramatically differs in the high-end and luxury segments. While investors account for 70% of consumption and often use financial leverage, if the market fluctuates, selling and reducing prices will take place quickly.
Mr. Vo Hong Thang – Deputy Director of Research and Development DKRA Vietnam, commented: “The current price level has increased 2-3 times compared to the period 2014 – 2015; the price reduction of the current market is from 30 – 3 times. 50% will partly bring the price back to the real price level and make it easier for buyers, genuine demand, for real estate during this period.”
“There is a trend in real estate businesses, to ensure cash flow and liquidity, businesses have reduced selling prices and increased discounts. We see this as an opportunity for people with real needs to look for products that were previously out of reach,” commented Mr. Le Hoang Chau – Chairman of Ho Chi Minh City Real Estate Association.
Experts predict that the wave of loss-making apartments in the secondary market will spread to 2023, especially projects under construction and forming in the future. With corporate restructuring going on strongly, this also helps the supply of apartments to meet actual demand at reasonable prices to return to the market.
For more information about projects, please get in touch with the sales department of Tan Long Homes for more details. Holine: 0986 720 720.
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