Southern house prices down 30%

The prices in Dong Nai Province plunged 15-20%, even 25-30% in some cases, as cash-strapped investors have tried to cut losses, according to a survey.

Many investors lowered their selling prices for villas in the province’s Bien Hoa City by VND4-5 billion ($169,000-211,000) per unit in late March, down from VND21-23 billion in early January.

Some struggling investors said they slashed prices by VND5.5 billion per villa, accepting losses of 30%, including taxes, brokerage fees, and bank loan interest.

Van, a real estate broker in the province’s Nhon Trach District, said that even though she had dropped her prices 15-20% by March, she still sold less than one townhouse a month in the first quarter of this year, compared with 5-7 units a month over the same period in 2022.

According to the survey, average prices for houses in rural districts of Ho Chi Minh City and the neighboring province of Long An dropped some 10%, and few transactions have been completed so far this year.

Property service provider DKRA Vietnam said houses in the South saw prices decrease by an average of 10% in the first quarter.

Property consultancy JLL Vietnam said the sale of houses in Ho Chi Minh City dipped 91.7% against the fourth quarter of last year, and by 98.3% against 2022’s first quarter.

In the first quarter of 2023, only 19 houses were sold, JLL Vietnam said, noting that most buyers and investors are adopting a wait-and-see approach.

Real estate developers are cautious about launching new products amid economic uncertainty and lingering legal issues, especially as demand is forecast to remain weak through mid-2023 and the property market continues to face economic difficulties, according to JLL Vietnam.

Vo Hong Thang, R&D vice director at DKRA Vietnam, said that despite the price drop, many buyers are waiting to fish the bottom or are too cautious about investing in real estate as the market is so quiet. This has resulted in record low liquidity this first quarter, he said.