"Lack" of liquidity
Prices of villas and townhouses in suburban districts of Hanoi such as Hoai Duc, Quoc Oai, Dan Phuong... have decreased significantly compared to the time of the Covid-19 pandemic in 2020 - 2021. Many real estate brokers said that although prices have decreased quite sharply, liquidity is very weak, with very few customers interested in visiting the house and asking for in-depth information about the product.
Row of townhouses in Area B Geleximco priced at around 7 billion VND/unit
According to a survey, the price of villas and townhouses with completed exteriors in Geleximco A, B, C and D urban areas along Le Trong Tan Street in Hoai Duc District, located quite close to the city center, has decreased significantly compared to the time of the Covid-19 epidemic.
Taking us to see a 60 m2 , 4-storey, west-facing, 5 m wide townhouse in Geleximco area B, Mr. Nguyen Trong Bang (35 years old, living in An Khanh commune, Hoai Duc district), a real estate broker with many years of experience, said the asking price was only 6.5 billion VND. Seeing that the customer was not satisfied, Mr. Bang immediately pointed to a row of nearly 10 similar townhouses, the owner wanted to sell, the price was also only around 7 billion VND.
Introducing more, Mr. Bang said, in urban areas A, B, C, D Geleximco also has some adjacent houses with an area of 100 m2 for sale at a price of more than 8 billion VND; an area of 120 m2 for about 10 billion VND; an area of 130 m2 for about 11 billion VND; semi-detached villas over 200 m2 for about 15 billion VND...
Prices of villas and townhouses in Hanoi's suburbs have fallen sharply but liquidity is weak.
"The current price has decreased by about 20 - 35% compared to the time of real estate fever in 2020 - 2021. For example, a 60 m2 townhouse, during the Covid-19 pandemic, the selling price was not less than 8.5 - 9 billion VND; a 100 m2 townhouse was sold for not less than 9.5 - 10 billion VND... But now, the cash flow is blocked in many other production and business sectors like during the Covid-19 pandemic, it is difficult to access bank loans, so house prices have dropped sharply," said Mr. Bang.
However, Mr. Bang admitted that house prices are still higher than before the Covid-19 pandemic. "Many real estate offices in the western part of Hanoi have disbanded because they are not effective. Most brokers have moved to other jobs instead of trying to stay, only a few still bring customers and give advice, but they haven't closed any houses for a whole month, losing money is normal, people are frustrated," said Mr. Bang.
High-end real estate cannot escape difficulties
Surveys at some other projects in the west of Hanoi: Vuon Cam Villa Area, An Lac Green Symphony Urban Area, Hoa Phuong Villa Area, Nam An Khanh Urban Area, Hinode Royal Park Urban Area, Lideco Urban Area... in Hoai Duc District show that the prices of villas and townhouses have all dropped quite sharply.
A 90 - 100 m2 townhouse in HUD Urban Area in Van Canh Commune (Hoai Duc District) is being sold for around 7 billion VND even though the house is quite old.
Some real estate brokers in this area said that most have reduced their prices by at least 20% compared to 2020 - 2021. Townhouses of about 90 - 100 m2, when the real estate market was booming, cost about 10 billion VND/unit, now cost only about 8 billion VND depending on the location, even 7 billion VND. One thing in common is that most of them are advertised for sale but are not selling well.
In Dan Phuong District, the price of villas and townhouses in The Phoenix Garden urban area in Phung Town has also dropped sharply. Previously, the selling price was over 40 million VND/ m2 , now it is only over 30 million VND/ m2 , so a 200 m2 house has a total value of only about 7 billion VND.
In Quoc Oai District, the price of villas and townhouses in the New House Urban Area and Suny Garden City Urban Area also fluctuates around 40 million VND/ m2 depending on the location, down about 20% compared to the time of price fever.
The price of villas and townhouses in the suburbs of Hanoi such as Dan Phuong and Quoc Oai districts... ranges from about 30 - 40 million VND/m2.
Commenting on the market of villas and townhouses in the suburbs of Hanoi, Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), said that liquidity will remain difficult for a long time because the economy is still facing many difficulties, people's income is limited, and there is no need to invest or change to a better place to live.
In addition, according to Mr. Dinh, in the past, some banks have launched credit packages for real estate loans, but accessing this source of capital is not easy, many strict conditions must be met. Not to mention, the trend of credit packages in the coming time will focus on the affordable housing segment rather than high-end real estate. Meanwhile, there is not much idle cash flow among the people, the trend of tightening spending makes it difficult to generate demand for buying villas and townhouses at this time.
"In addition, the value of each villa and townhouse in the suburbs of Hanoi is at nearly 10 billion VND or more, which is not a small amount in the current context. Therefore, if the price is anchored at this level, it will be very difficult to generate liquidity," said Mr. Dinh.
According to Mr. Dinh, the general real estate market still faces many difficulties, especially the large volume of real estate bonds due to mature in 2023 - 2024. In the short and medium term, there will be many difficulties for the high-end real estate and resort tourism segments...
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