HCMC townhouse prices fall on low demand

By Nguyen Tieu   October 10, 2023 | 08:56 pm PT
HCMC townhouse prices fall on low demand
Thanh Thai street in District 10, Ho Chi Minh City has many houses for sale in 2023. Photo by VnExpress/Nguyen Tieu
The prices of townhouses have decreased by 8-20% in Ho Chi Minh City in the last few months.

In the last five months the number of such houses for sale has increased sharply, including in prime locations such as districts Phu Nhuan, Binh Thanh, 10, and Tan Binh.

According to online real estate trading floor Batdongsan, low-rise housing prices have decreased by 3-6% in most urban districts, ranging from 1% in Binh Thanh, to 6% in Binh Tan.

Data from real estate advertising site Nha Tot showed prices of low-rise housing averaged VND163 million per square meter in September, down nearly 11% from a year earlier.

The average price of houses situated inside alleys was VND114 million per square meter, a decrease of 8%.

Dinh Minh Tuan, director of Batdongsan in the south, said demand for low-rise housing is falling and listed four reasons for it.

Their prices still remain high and often requires buyers to obtain a loan to buy, he said. "When the customer base decreases and there is more competition, homeowners are inevitably forced to adjust selling prices."

If the economic situation and interest rates turn positive, the low-rise housing segment would become vibrant again maybe in the second quarter of 2024, he forecast.

Neil MacGregor, managing director of Savills Vietnam, said supply in the low-rise housing market is becoming scarce due to the limited availability of land and legal issues.

Only 200 new houses and villas would enter the primary market this quarter, he said.

By 2026 that number would not be more than 4,600, and so their prices and liquidity would improve, he said.

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