Apartment sales down 89% in south

The sales numbers plummeted by 89% partly because supply, especially in new projects, decreased sharply, it explained.

Tightened credit conditions also played a part by making it difficult for people to borrow to buy housing.

According to the real estate consultancy, in November many developers offered discounts of 40-50% for apartments in the primary market while prices decreased by 3-5% in the secondary market from October.

Most transactions last month were by sellers who urgently needed money to repay banks after loan interest rates surged.

Property developers did not launch new products in November and early December amid a continuing slump in sales.

Their market surveys in the third quarter and over the next two months found buyers’ sentiments remained low.

A developer with an apartment project in HCMC’s Thu Duc City said most customers have postponed purchase plans this year and instead are planning to hold cash for the next three to six months.

The developer of another apartment project in Thu Duc said: "Our company planned a product launch in the fourth quarter. But a survey of consumer behavior showed that people are not ready for housing purchases in 2022."

Nguyen Mac Hoai Nam, general director of Nam Phat Consulting Service Company, told VnExpress the apartment market is in a prolonged slump, with liquidity and demand falling even in HCMC and Binh Duong.

Many experts expect the situation to continue into 2023, with apartment prices in the primary market remaining high and people selling at discounts in the secondary market to cut losses.