Villas and townhouses in Ho Chi Minh City with prices ranging from 30 billion VND/unit or more are still being regularly advertised on some real estate trading sites.
A villa with a frontage on Street 13, Thu Duc City with an area of 500m2 is listed for 53 billion VND. The broker introduced the frontage road of 8m, 3-bedroom house, pink book in the owner's name. Also in Thu Duc City, a villa with 2 frontages on the Saigon River with an area of 452m2 is listed for 45 billion VND.
In addition, some large villas on Le Van Sy, Nguyen Minh Hoang, Thang Long streets (Tan Binh) or Ho Van Hue, Nguyen Van Troi (Phu Nhuan) also have prices of over 30 billion VND/unit.
However, a broker said that it is not easy to sell large-area, high-priced products at this stage. Because customers do not have ready cash, borrowing from banks is still difficult. Moreover, sellers do not give customers additional discounts but keep prices quite tight.
In the primary market, Savills Vietnam's report shows that there is almost no activity taking place in the townhouse and villa segment. Ho Chi Minh City's population is over 10 million people but the supply is only nearly 770 units, the lowest in the past 10 years and there is no new supply.
The market had 64 transactions, absorption rate was only 8%. Investors stopped selling, limited marketing, no longer had diverse sales policies such as extended payment, rental commitment to increase demand.
Ms. Giang Huynh, an expert from Savills Vietnam, said that high-priced inventory (over VND30 billion/unit) accounts for a large proportion of the market (86%) while new supply is limited, which is the reason why this segment is sluggish. At the same time, when liquidity and interest rates have not improved, the market is still sluggish.
Valuable townhouses and villas are difficult to trade in Ho Chi Minh City (Illustration: Hai Long).
DKRA Group's report also shows that the villa and townhouse market in the Southern region has not seen many fluctuations in primary prices. Secondary market liquidity is at an average level, with prices recording an average decrease of 11-15% compared to the beginning of the year. The context of declining market liquidity, interest pressure... has forced investors to cut profits/selling prices to recover cash flow.
Talking to Dan Tri reporter, Ms. Duong Thuy Dung, Senior Director, CBRE Vietnam, said that at this time, the value of the product is the primary factor influencing the decision of home buyers. Products with too high a value will certainly be picky customers, not to mention there are too few options on the market, such as the townhouse and villa segment.
7-8 years ago, when there were many villas and houses attached to land in Ho Chi Minh City, a series of projects in District 9 were put up for sale on the market, so customers had more choices with prices ranging from 20-30 billion VND/unit. At that time, money was abundant, so market liquidity was good.
Currently, Ms. Dung assessed that there are not many choices in the supply. Even if customers have money, it is difficult to choose a product because they may not be satisfied with some issues... especially with large amounts of money, they are more cautious in investing.
In addition, affordability also greatly affects the choice of spending money. Because townhouses and villas are also the slowest recovering product lines compared to other types.
"This is a difficult economic time, and affordability greatly affects the decision to buy a house. Products priced at around VND10 billion/unit have better liquidity, whether they are apartments or products attached to land," said Ms. Dung.
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