TOWNHOUSES, VILLAS IN THE SOUTH HAS A DISCOUNT OF NEARLY 30%

In the first quarter, townhouses in southern projects reduced prices by 15-20% on the secondary market, especially in some cases, they cut losses by nearly 30% compared to the same period in 2022.

A survey by VnExpress showed that from January to March, townhouses and villas at land-house projects in Nhon Trach, Bien Hoa, and Dong Nai reduced prices by 15-20% because buyers were overwhelmed by their finances and sold out of their goods. There are even cases where prices drop by 25-30%.

Specifically, in a large urban project in the Bien Hoa area, many villas priced at 21-23 billion dong were offered for sale, down 4-5 billion dong per unit compared to the listing at the beginning of last year. There are cases of island villas, and river views, priced at 22 billion VND, investors stuck in finance should offer for sale 5.5 billion VND, down 25% compared to the original price. The seller said that if taxes, brokerage fees, and bank interest are included, the loss is up to 30%.

Mr. Chau, a broker with nearly a dozen years of expertise in this area, confirmed that although the price of the projects townhouses and villas has dropped quite deeply, due to slow progress, the investor is also in the group of difficult and legal real estate businesses. on the subject of inspection, so very picky buyers.

And in Nhon Trach, a mega-urban project located on a peninsula, recorded garden villas with an area of ​​300-400 m2, construction structure of 1 ground and 2 floors, at the end of March, the selling price is reduced by 4,5-5.5 billion dongs per unit compared to the original price in the same period last year (equivalent to a decrease of 15%). For villas with a land area of ​​400-500 m2, construction scale of 1 ground floor and 1 floor, the secondary asking price is currently reduced by 3.5-5 billion VND per unit compared to the original price the investor opens for sale (ie discount). 10-15%).

A smaller-scale ready-built townhouse project also in Nhon Trach, a completed townhouse, 6.5 meters wide, 20 meters long, is offered for VND 7.78 billion, down nearly 15% compared to the beginning of the year 2022.

Ms. Van, a broker with half a decade of selling real estate projects in Nhon Trach, said that during the first quarter, the real estate market in this area was quiet. At the end of March, the volume of transactions in this area decreased sharply compared to the same period last year, although the exit price has adjusted by 15-20%. Most projects have slow liquidity because buyers dont care, investors are short of finance, and interest rates are high.

Ms. Van said that in the first quarter of 2022 when the price was still high, she used to close 5-7 apartments in the peak months. But in the past 3 months, it was almost stagnant, every month she did not sell any apartments or only had one successful transaction even though the seller lowered the price a lot.

Particularly in the districts adjacent to Ho Chi Minh City such as Binh Chanh, and Nha Be, and the province bordering to the south of Saigon, Long An, the decrease of land houses on the secondary market was recorded at 10%. However, the seller did not accept a further reduction when buyers bargained down to 15-20%, the transaction was quite quiet.

DKRA Groups report on the market for townhouses in Ho Chi Minh City and its vicinity also shows that in the first quarter, the southern land houses decreased by an average of 10% on the secondary market, in many cases the price drops were deeper. The price of primary townhouses does not decrease directly but offers a high discount for buyers who pay quickly but have poor liquidity. Consumption of ready-built houses in Ho Chi Minh City and neighboring provinces accounted for only 14% of the primary basket, or 85% of the basket of goods offered to the market.

Market data of JLL Vietnam Company also recorded that the volume of real estate transactions in Ho Chi Minh City dropped sharply by 91.7% compared to the previous quarter and decreased by 98.3% over the same period. In the first quarter, there were only 19 units for sale, but mostly in old projects. Most buyers and investors are temporarily standing outside the market waiting, transactions are quiet and legal difficulties have not been resolved completely.

According to JLL, supply is under pressure due to cautious sentiment amid economic uncertainty and lingering regulatory issues. Demand is forecasted to remain weak in the first half of 2023 as the market continues to face economic difficulties affecting housing investment decisions.

Before the above situation, Mr. Vo Hong Thang, deputy director of the R&D department of DKRA Group, said that depending on the locality, the decrease was not uniform, but the price drop fell into 3 groups of reasons. Firstly, those who hold assets with difficulties in cash flow need to exit the goods and are forced to lower prices to restructure their investment portfolios. Second, the product has poor legal status or the basket falls into the area being inspected, so the price drops sharply. Finally, some project developers have problems with cash flow, construction is slow, causing people holding goods to worry about bad scenarios, losing confidence in the prospect of keeping asset prices, so they sell out.

The deputy director of DKRA Group forecasts that the price of houses in the suburbs is currently quite deep in the context of the quiet market but the psychology of buyers is still waiting to catch the bottom or have no confidence to buy. This resulted in record-low liquidity in the last 3 months.

Mr. Thang said that it is difficult to predict when the price drop will stop, and even more difficult to detect the bottom because it depends on the emotional decisions of the sellers and buyers, but the gray scenario may persist in the coming quarters.

Source: vnexpress.net