Up to 50% off original price
According to the Ministry of Construction's market report for the third quarter of 2023, the number of transactions in the land segment in the third quarter increased compared to the second quarter of 2023 (in the third quarter of 2023, there were 91,277 land transactions, equal to 135.72% compared to the second quarter of 2023). Regarding the inventory, the reports of 52/63 localities showed that this type had 7,190 plots (in the second quarter of 2023, according to the reports of 17/63 provinces and cities, there were 7,501 plots).
In addition, the search demand and interest of investors in products for individual houses and land in real estate projects have increased compared to the second quarter of 2023. In particular, the transaction prices of the real estate segment of adjacent villas, individual houses and project land in many localities in the third quarter of 2023 have slowed down in terms of price reduction compared to the previous quarter.
Land transaction volume increased significantly in the third quarter of 2023.
However, according to records at some real estate trading floors, in some coastal provinces, many land products are still being sold at a loss in the secondary market with the loss price advertised up to 50%. The loss-cutting ads focus on some projects located in coastal provinces and cities such as: Quang Ninh, Da Nang, Khanh Hoa, Binh Dinh, Quang Nam...
For example, in Cam Pha (Quang Ninh), a 108m2 project land plot located on the coastal road is being sold by the owner for more than 2 billion, equivalent to about 20 million VND/m2. The advertiser said that this land plot is located close to the sea, convenient for business with a completed infrastructure system.
According to some information posted for sale by this project in 2021, the selling price posted by the investor for a similar plot of land was more than 40 million VND/m2. Thus, after only 2 years, this plot of land was sold by the landowner at a "loss" price of up to 50% compared to the original price.
In another sale post in Lien Chieu District (Da Nang), a project land with a view of a coastal park is also being sold at a price reduced by about 40% compared to the original price. The seller said that the 100m2 plot of land with a frontage of more than 10m2 had a selling price of about 3 billion at the end of 2021. However, due to needing money, the landowner reduced the price to only more than 1.8 billion VND for this plot of land.
Coastal land prices are still falling sharply compared to the peak.
The decrease in land prices in some coastal cities was also recorded by the Real Estate Brokers Association in Nha Trang city earlier. Specifically, land in the center of Nha Trang city recorded transactions in land lots valued at less than 2.5 billion VND/lot, down 20-30% compared to the starting price. Meanwhile, agricultural land in the areas on the outskirts of Nha Trang city had poor transactions, with prices down about 20% compared to the peak.
However, in the secondary market of Nha Trang, the liquidity of project land and secondary apartments, although advertised at “loss-cutting”, is still weak. Investment and trading activities have almost stopped. However, this price reduction is said to be lower than in other areas in Khanh Hoa province.
Many localities that used to be "hot" with coastal land like Nha Trang also recorded a decrease of 20-30%.
According to some real estate brokers, this loss-cutting situation continues with this type of real estate that was once sought after by many people, mainly because investors use large leverage. Most of the loss-cutting ads come from old projects, purchased by investors in the 2021-2022 period, when the real estate market was "hot" and prices were pushed up quite high due to speculation.
At that time, the preferential policies for buyers were not large and did not have a long-term vision because they mainly bought and sold quickly. Many investors also ignored the risks when using large financial leverage, mainly using bank money to invest in real estate. Therefore, at present, although the market has recorded many signs of recovery, there are still many plots of land "overwhelmed" because they are no longer able to repay bank loans after 2 years of debt.
In addition, due to the general impact of negative factors in the resort real estate market as well as the tourism market, many investors have lost confidence and patience in waiting for recovery, so they continue to sell their assets at a loss.
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