HCMC, southern provinces apartment market in a deep slump

Property consultancy DKRA Group said in its report that 54% of the sales were of units priced at VND30-35 million (US$1,222-1.426) per square meter.

Vo Hong Thang, the company’s deputy CEO, said the shrinking affordable housing segment in HCMC and neighboring Binh Duong Province has made it difficult for people to buy though there is strong demand for housing.

A recent survey by property services firm Dat Xanh Services found that 63% of respondents cited financial constraints as the primary reason for not buying a property.

Declining incomes are making potential buyers hesitant about borrowing from banks and down payments unaffordable. Many are waiting for housing prices to fall.

A survey by property listing platform Batdongsan found that 74% of buyers want apartments priced at VND40 million per square meter in HCMC, but, according to the Vietnam Association of Realtors, most are priced above VND50 million.

Dat Xanh Services expect HCMC apartment prices to rise by 5-10% by the end of the year.