Sluggish home demand recorded in HCMC

By Vu Le June 9, 2023 | 05:54 am PT

Buildings in Ho Chi Minh City. Photo by VnExpress/Quynh Tran

Only 143 apartments and houses were sold on the primary market in Ho Chi Minh City in May, a 98% plunge year-on-year, as demand for property continues to be sluggish.

A total 138 apartments were sold directly from the developers last month in HCMC and the neighboring province of Binh Duong, down 98%, even though 390 new apartments were introduced to the market, according to data from property services company DKRA Group.

Five houses were sold during the period in HCMC and the neighboring provinces, down 99% year-on-year, it added.

Although many developers last month offered discounts of 15-18% on property products and other loan interest incentives, few people showed interests in making purchases.

The lack of customers and declining liquidity began last year and continued to show this year, according to the Vietnam Association of Realtors.

Personal financial difficulties amid unfavorable economic factors are the main reason for the low demand, it said, adding that high interest rates discourage homebuyers from making purchases and they instead prefer to keep their money in the bank.

Vo Hong Thang, deputy director of R&D DKRA Group, said that except for some projects developed by reputable companies in prime locations, demand overall was weak in the city last month.

"Given current economic statistics, it is unlikely that positive signals will show in the property market in the short-term," Thang said.