Real estate transactions in the South slow down

Contrary to the trend of the real estate market being more active at the beginning of the year, currently, the volume of transactions is very slow.

In the first days of the new year, very few real estate transactions were successful in the Southern region.

Market is empty

In November 2024, the Binh Duong real estate market saw the appearance of a land project called Alana City in Phu Giao district. The project has more than 2,000 land products, with a selling price of 12 - 20 million VND/m2. However, according to Mr. Nguyen Van Tung, director of a trading floor selling this project, the number of transactions is very low. "During the first opening period, about 5 products were traded each week, but in January 2025, there were no successful transactions," said Mr. Tung.

Le Phong Group's apartment project on National Highway 13, Thuan An City, was opened for sale in October 2024, but to date, only about 30 products out of a total of more than 700 products have been traded.

Also in Binh Duong, the Cat Tuong J-Home project is considered a rare townhouse project in Thuan An City, with a price of more than 3 billion VND/unit. However, according to reports from sales brokers at this project, in the first 3 months of opening for sale, about 40% of the products were traded, but after that, the transactions gradually decreased and recently there have been no successful transactions.

In Long An, in the third quarter of 2024, there were about 5 new real estate projects opened for sale, including an apartment project with the lowest price on the market today - 27 million VND/m2. However, sales brokers at these projects said that since November 2024, transactions have slowed down. In particular, many projects have no longer been successfully traded.

For example, at the Destino Centro Apartment Project, Mr. Nguyen Thanh Y, Sales Director of the project's sales floor, said that from December 2024 to now, there have been no successful transactions at this project. In addition, customers are also very little interested.

Villa and townhouse projects are also in a "desolate" state. Thang Loi Group said that in November 2024, this enterprise launched a townhouse project in Tan Tru district, but had to stop selling because there were no transactions.

In Ho Chi Minh City, the market has also begun to slow down. Although the King Crown Infinity project in Thu Duc City is still under construction, brokerage floors said that the transaction volume has slowed down since November 2024 and recently there have been no successful transactions.

Mr. Nguyen Van Tung, General Director of DKRS, said that the transaction market is quite slow. Many projects before being launched for sale were highly anticipated due to their low prices, favorable locations, fast construction progress, and legal documents, but when they were launched for sale, the number of successful transactions was very low. Among them, many projects had to stop after a few months of launching for sale because transactions were too slow and they did not have enough sales costs.

The market is recovering one way.

According to the market report from the Real Estate Market Research Department of DKRA Group, the Southern real estate market in 2024 will recover significantly in terms of the number of new products for sale as well as the recovery of markets such as Ho Chi Minh City, Binh Duong, and Long An compared to 2023. Specifically, the land segment has 7,814 products for sale, an increase of 1% compared to 2023; the apartment segment has 23,459 apartments for sale, an increase of 6% compared to 2023; townhouses and villas have 6,765 units for sale, an increase of 24%.

Mr. Vo Thanh Dat, General Director of Tran Anh Land Real Estate Joint Stock Company, said that the real estate market is recovering in one direction. In particular, newly launched products are recovering well, but the buying direction has not recovered.

“This recovery phase difference can be seen in projects with many new launches but low successful transactions. There are projects that we participate in selling, but only transact less than 10 products in the whole year, while in previous years, projects after 6 months of opening for sale often had successful transactions of over 70%,” said Mr. Dat.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said that the market is moving unevenly. In particular, the amount of mid-range products is mainly concentrated in Binh Duong; townhouses and villas are concentrated in Long An, while in Ho Chi Minh City, there are high-end products.

The worrying point is that the gap between supply and demand is getting bigger and bigger, when the number of projects opening for sale is growing strongly, but the demand for real estate from customers is slowing down. The reason is that real estate prices are exceeding people's ability to buy houses, while secondary investors have not yet returned to the real estate market, bank interest rates are still high...

“Market demand cannot recover in the short term and needs more time to return to the vibrant pace of the period from 2019 and earlier,” said Mr. Chau.

Source: https://baodautu.vn/batdongsan/giao-dich-dia-oc-phia-nam-cham-lai-d242304.html