People sell properties at loss as pandemic hits incomes

Quoc recently sold an apartment in Thu Duc City for a loss of over VND133 million ($5,855), or 5 percent.

He and his wife had paid 35 percent of its cost, but their income has fallen by 58 percent, which forced them to sell the property.

Tri of Binh Chanh District is in a similar plight and sold his VND2-billion apartment at a loss.

Having lost his job due to the pandemic, he was unable to pay off the mortgage and had to bear a loss of several hundred million dong (VND100 million = $4,400).

Land owners are also suffering. Thu of District 7, who owned four land lots in surrounding localities Binh Duong, Dong Nai, Long An, and Bao Loc, recently sold two of them and lost nearly VND200 million.

"If I could keep on holding through the outbreak I might make a profit, but I’m in need of cash."

Phan Cong Chanh, CEO of property developer Phu Vinh Group, said that many investors are selling off at losses since incomes are drying up.

"It is likely that many investors cannot keep on holding any more. There might be corrections in the market soon."

Those who borrowed 50-80 percent of the property value are most likely to sell, he said.

As most retail investors are only able to hold their properties for one or two years, the pandemic which began early last year is now forcing them to sell, he pointed out.

But he added that this is only temporary and the market has not seen panic selling yet.