Recently, in some real estate "markets", many investors in the districts on the outskirts of Ho Chi Minh City are selling all kinds of land and townhouses at "suffocating" prices to pay off bank loans. For example, in An Nhon Tay commune (Cu Chi), an investor is selling a plot of land of more than 800 square meters, combining residential land and land for perennial crops, for 5.9 billion VND.
The seller said that this is a piece of land with a beautiful location, with a 30m wide frontage, ideal for those who want to buy it to build a resort villa or a small warehouse. At the time of the "land fever", this piece of land cost nearly 8 billion VND, with bank support for loans up to 80%. However, at present, because the landowner is no longer able to repay the bank loan, he is selling at a loss of nearly 2 billion VND.
Not far away, in Xuan Thoi Dong, a plot of land of nearly 1,000 square meters is also being offered for sale at a price of 5.5 billion VND, equivalent to 5.5 million VND/square meter. The landowner said that this is a "suffocating" plot of land that has been deeply discounted, and the land use purpose has been changed from land for growing crops to residential land. At the peak of early 2022, this plot of land was worth nearly 10 billion VND.
A "suffocating" sale post with a price cut of nearly 1 billion VND.
In the same situation, many plots of land in some areas such as Xuan Thoi Dong, Xuan Thoi Son, Xuan Thoi Thuong, Dong Thanh of Hoc Mon district (HCMC) are also in a situation of cutting losses due to pressure from bank loans. For example, in Xuan Thoi Thuong, a 105m2 townhouse is being offered for sale at 6 billion VND. The seller said that the previous price of this house was 6.7 billion VND.
However, due to the general freeze of the real estate market, the above-mentioned townhouse still cannot find a buyer after being put up for sale for a long time. This is also the situation of many investors in land and townhouses in the suburbs, they are still struggling with the idea of continuing to reduce prices because they cannot find buyers or borrow money from the bank to wait for the market to recover. It is known that at the time of the previous "wave", land in Cu Chi and Hoc Mon was pushed up 2-3 times in price compared to 2018. Land prices only leveled off around mid-2022 and gradually decreased until now.
Explaining the price increase, many experts said that land plots in the outskirts of Ho Chi Minh City are highly valued by many investors because land in the center has increased in real value to be able to invest in the long term. However, the fever of land plots in the outskirts has also been warned about the risks when prices are pushed up too quickly during the period when the market is inflated. At the same time, in Hoc Mon, information about the district being upgraded was spread by many land brokers, making many investors more confident in the opportunity for successful investment here.
Plots of land with such beautiful frontage once made many people compete to buy them.
Not only in the districts far from the center, although there are many developments in infrastructure, real estate in Thu Duc City (HCMC) is also slowing down with many ads for sale at a loss. Not only land, individual houses and townhouses in urban areas also recorded a significant price decrease.
According to records, in wards such as Long Truong, Phu Huu, Long Phuoc... are the areas with the most overstocked properties in Thu Duc City. Information about overstocked properties, with discounts from 500 million VND to 2 billion VND continuously appear on real estate trading floors.
The reason for the appearance of many suffocating goods is still due to the financial burden from bank loans or investors wanting to cut losses to invest in other areas. In addition, many landowners said they needed capital to do business after losing money during the COVID-19 pandemic.
It is known that the residential and agricultural land markets in the West of Ho Chi Minh City have both decreased by 15-30% compared to the peak of the market. Along with weak liquidity due to cash flow still waiting to catch the bottom, many investors holding garden land, agricultural land or even townhouses seem unable to sell their goods.
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