Decline in sales volumes, apartment prices fall further 

Only 213 apartments were sold in Ho Chi Minh and adjacent Binh Duong Province, and none in other southern localities, according to DKRA Vietnam. It explained that the sales volumes fell by 89%, partly because the cities are facing a shortage of real estate supply, especially in approval projects, which dropped sharply.

HCM apartment prices drop further as investors seek to cut losses

Those who invest or speculate in the apartment in Ho Chi Minh City are now willing to accept to cut losses by VND500-600 million, equivalent to the earlier VND300 million, to sell off their apartments.

A man who identified himself as Lu said he doubled the discount on an apartment he was trying to sell from VND300 million in the third quarter. "Over the past year, I have yet to sell my apartment worth VND3 billion. Now I must discount VND600 million", he said. State Banks lift interest rates from 9% to over 13%. Meanwhile, townhouse land prices have fallen by around 27% since mid-2022, a land fund cost VND135 million per square meter in early December, against VND185 million earlier. 

"90% of buyers/investors don't make decisions faster. They assume that in 2023 the property market will struggle to survive". Nguyen Loc Hanh, CEO of Asia Gem Real Estate Investment Joint Stock Company, said that the secondary market sees low liquidity, an unfavorable market. And many property developers who abuse leverage offer much more significant discounts than in the second or third quarters. 

Industry insiders expect Vietnam's real estate market to slump next year, with land and housing prices falling further in early 2023, maybe by 30-40% from 2021.

Apartment sales down 89% in south

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 deals 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. Most customers have delayed purchasing purposes this year and plan to hold cash for the next year because the price for properties can reach its bottom. 

According to Nguyen Mac Hoai Nam, general director of Nam Phat Consulting Service Company, "The real estate market is in a prolonged recession, with liquidity and demand falling in all cities. Many experts expect the condition to continue into 2023, with the selling prices for apartments in the primary market staying high and people selling at discounts to cut looses". 

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