Southern property prices to fall this year

By Dat Nguyen   February 12, 2023 | 03:25 pm PT
Property prices in the south are expected to continue falling for the next six to 12 months, especially at projects where speculation had pushed up prices.

In Ho Chi Minh City’s outlying districts such as Binh Chanh, Nha Be, Can Gio, Hoc Mon, and Cu Chi, VnExpress found that sellers have cut land and house prices by 10-25% from last year.

Apartment prices have dropped by 10-30%.

"The decline in property prices might continue in the first half this year, and by the third quarter we will see fair value in areas where prices had risen unusually in recent years," Le Quoc Kien, a property analyst, said.

This year empty properties that have been traded back and forth would be in worse shape in terms of valuation than those that have been used, he said.

The surge in prices between 2016 and 2019 and again in 2020-21, when people spent their savings on buying property in the hope of making a killing, has created unreasonable valuations, he said.

"Some people never even visited the property they bought before selling it off."

But such speculation has ended amid the low market sentiment this year, he added.

Tran Khanh Quang, CEO of property developer Viet An Hoa, said prices would fall by 3-4% in Ho Chi Minh City and more in its neighboring areas.

Long An, Binh Duong and Dong Nai provinces could see prices fall by 10-15% in the next 12 months, and in farther localities such as Tay Binh, Binh Duong and Dak Nong, the decline could be more than 20%, he added.

The chairman of a listed property developer, who asked not be identified, said high loan interest rates and the low possibility of getting new loans would force many companies to liquidate their products at a discount to reduce risks.

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