Homeowners stop selling at a loss, waiting for price increase

Stop selling at loss, wait for price increase

Since September, Mr. Tran Van Dung in Hoang Mai District (Hanoi) has been selling his house. But now he has decided to change his plan and stop selling. The reason is that although he has offered a loss-cutting price, buyers still offer lower prices.

"Selling my house was difficult because there were many people coming to see it but no buyers. In addition, many buyers forced me to lower the price below the loss-cutting price, making it impossible for me to sell," said Mr. Dung.

According to Mr. Dung, the financial pressure has now been somewhat reduced as bank interest rates have "cooled down", he has been able to borrow money from the bank so selling the house is not too important. In addition, he admitted that despite offering a low price, his house is still difficult to sell. Therefore, he decided to stop selling to wait for a better price when the market is showing many signs of improvement.

Chủ nhà dừng bán cắt lỗ, chờ tăng giá - 1 — The market is in a situation where homeowners stop selling at a loss and wait to sell at a higher price in the future (Illustration: Ha Phong).

Ms. Pham Thi Nga - a real estate broker in Hanoi - admitted that the situation of homeowners "turning around" and not continuing to sell is happening more and more. Some homeowners have received deposits from buyers, but still accept to return them and pay a fine to stop the transaction.

According to Ms. Nga, the market has had more successful transactions since the middle of this year. However, at present, many houses and plots of land with good locations have increased in price or the owners have stopped selling.

"At this time, most homeowners have stopped selling at a loss to wait and see. Some homeowners have changed their selling prices to a higher level. If they are not under financial pressure, they need to sell quickly," said Ms. Nga.

The real estate market has escaped the risk of "losing its brakes"

According to experts, thanks to the State's macroeconomic policies, in which interest rates are very favorable, creating conditions for the market to have better access to capital. The market is recovering and starting a new cycle that will be clearer next year.

In fact, when the market shows signs of recovery, investors also wait to sell at a price close to the market. Therefore, many homeowners "turn around" and do not sell at a loss or reduce the price further, but will consider offering a better price. Or they do not sell anymore because they have managed their cash flow.

Chủ nhà dừng bán cắt lỗ, chờ tăng giá - 2 — The real estate market is receiving many signs of recovery (Illustration photo: Ha Phong).

Mr. Hoang Hai - Director of the Department of Housing and Real Estate Market Management (Ministry of Construction) said that the efforts from the Government, ministries and related units have contributed positively to "maintaining" the real estate market. "Although the market is not strong enough to "overcome the slope", it has basically escaped the risk of "losing the brakes" and is regaining momentum," Mr. Hai emphasized.

According to Mr. Hai, the mechanisms and policies to promote the market have begun to show signs of being absorbed. The volume of transactions in the entire market has gradually increased over time.

Notably, the search demand and interest of investors in products for individual houses and land in real estate projects has increased compared to the first two quarters of this year, however, the overall transaction situation has not improved much.

"Primary real estate prices have not changed much compared to previous quarters, and have started to level off, even increasing slightly in localities showing signs of positive recovery," said Mr. Hai.

Source