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Land prices in the districts of Binh Chanh and Nha Be declined 20-30% in the first nine months, and some landlords even offered another 5-10% discount on immediate transactions.
In Phong Phu and Long Thoi Communes, the prices downed 35%, and then again at the same rate June.
In Thu Duc City, the prices fallen by 15-20%, with some exceptions of up to 30% in certain areas.
Hoc Mon District recorded a price drop of 7-10%. Prices are now around VND17-21 million ($693.88-857.14) per square meter.
HCMC’s neighboring localities such as Binh Duong, Long An, Dong Nai and Binh Phuoc all saw prices falling by up to 40% as sellers sought to get rid of their assets quickly to pay debts.
A land investor said that since the end of last year, he lowered the prices of his lots in Dong Nai from VND22 million to VND16 million now, a 27% decline. He still has six out of 12 lots unsold.
Phu, a land broker in Dong Nai, said that in the last three months few transactions have been successful even though there were many inquirers.
Some owners have been listing their land lots for nine months but still have not found any buyers, he added.
A report by property consultancy DKRA Vietnam said that in the third quarter, HCMC and neighboring localities recorded six new land projects with a new supply of 271 lots, down 79% year-on-year.
Only 25% of them were bought, the report added.
Property listing platform Badongsan saw the number of searches for land lots in the third quarter plunging 57% year-on-year, implying a drop in demand.
Nguyen Quoc Anh, deputy CEO of the platform, said that the land market might see a slower recovery than other assets, and prices will only rise in 2024-end at the earliest.
He added that there is still lack of credit for property and it will take three or four quarters for interest rates to fall to 2021 levels.
CEO of property developer Asian Holding Nguyen Van Hau also said that a recovery is only expected in the second half next year as currently the economy is still going through many difficulties.
