Villas and townhouses have recorded a 30% decrease compared to the peak.

Before the “frozen” market period, the segment of townhouses, villas, and shophouses was favored by investors and was extremely active in the secondary market. However, in recent times, due to a sharp decrease in demand, products in this segment have received little attention from investors.

According to VARS, real estate products with a value of more than VND20 billion such as townhouses and villas recorded a reduction of up to 30%, although this price is still higher than the selling price from the investor. Many investors accept to "cut interest" to recover capital to invest in other channels and types more suitable for the current time or to pay off loans to reduce financial pressure.

However, according to many experts, although the supply of this type of product has not recorded any new products in the past, liquidity has not improved. Products priced over 10 billion VND are very difficult to trade, and very few investors are interested.

Villas and townhouses are segments that have attracted many investors.

It is noted that there are products at this price that have been offered for sale since the beginning of the year until now, but no one has asked to buy them. There is even an investor who owns 2 shophouses in a coastal project who has agreed to bring the product closer to the investor's purchase price, but due to many factors of the project such as legality and loan capital, no one is interested.

According to Mr. Dinh Hoai Phuong - owner of a real estate brokerage company in Ho Chi Minh City, "Our customers are selling 5 shophouses and some luxury villas from the end of 2022. In the past three months, some people have asked but they are still only at the reference level."

Mr. Phuong said that there are many reasons why buyers are not interested in these high-priced products, such as the discount level is not attractive, the product has low potential for price increase, and the short-term profitability is not available. At present, investing in real estate is still very risky, so many investors do not dare to take risks with high-priced products, not to mention the prices of many projects have been "inflated" after 3-4 transfers in the secondary market.

It is worth noting that at present, the market demand is coming from buyers with real housing needs. For this group of customers, affordable products or mid-range segments have not been priced too high compared to the market. Therefore, for the liquidity of the villa townhouse segment to recover, we still have to wait until early 2024, when the market is vibrant again or home loan interest rates decrease to a level attractive enough for investors.

The lack of cash flow returning to real estate is also a problem that has caused the high-priced villa segment to not receive attention.

According to a recent study by Batdongsan.com.vn, when discussing the expected interest rate for home loans in 2023-2024, people with low-middle incomes believe that a home loan interest rate below 8% is reasonable for them to manage their finances and expect interest rates to drop to this level in 2024. However, according to experts, bank interest rates will decrease in the second half of 2023, but the decrease will hardly be as expected by home buyers.

According to Mr. Vo Huynh Tuan Kiet - Director of CBRE Vietnam's housing market, to reduce interest rates in the market, it is not only necessary to reduce the operating interest rate but also to have abundant liquidity in VND. The reduction of loan interest rates still comes from the initiative of commercial banks. For the reduction of deposit interest rates to affect the reduction of loan interest rates, there needs to be a certain delay, it may take 4-6 months from the time the deposit interest rate is reduced for the loan interest rate to be reduced accordingly.

Currently, despite the reduction in variable interest rates, floating interest rates at many commercial banks still fluctuate between 13.5 - 14%, and many banks still have lending rates at around 15%. From now until the end of the year, if home loan interest rates decrease, the lowest interest rate will still be between 12 - 13.5%.

Source: https://www.congluan.vn/biet-thu-nha-lien-ke-da-ghi-nhan-muc-giam-30-so-voi-dinh-post256521.html