Townhouse, villa sales fall by 92% in the south

According to real estate consultancy DKRA Group, most of the transactions occurred in the VND1.9-2.4 billion (US$76,000-96,000) range, and mainly in the first half of the year.

Binh Duong Province accounted for 45% of them.

Vo Hong Thang, market director of DKRA Group, said sales of townhouses and villas have been declining since the third quarter of 2022.

He blamed it on high prices, difficulty in getting bank loans, investors’ desire to sit on cash in a dormant market, and fears about a slow recovery.

Real estate consultancy JLL Vietnam reported that in HCMC only 180 housing projects were launched last year, the lowest in a decade.

The reasons for the thin supply included developers’ apprehensions about the slumped market, the wait-and-see attitude of potential buyers and delays in legal procedures and construction. The absorption rate was only 31%, down 60 points.

According to Thang, new supply and demand are expected to improve this year with 1,200-1,500 projects launched in the south, mainly in Long An, Dong Nai and Binh Duong. But HCMC would continue to languish, he said.

The lack of transactions could continue until the middle of this year, he forecast. "The general demand in the market may improve near the end of this year when there will be real estate projects fully compliant with the laws, new infrastructure and developments by reputable players."

Prices in the primary market would remain stable and the price cuts and other promotions would ease off, he added.