The real estate market maintains weak purchasing power as the number of transactions in many segments decreased by 60-70%, due to customers' cautious mentality regarding house prices and loan costs.
A report from DKRA Consulting shows that in July, the Ho Chi Minh City market and surrounding areas recorded 10,500 apartments opened for sale, the recorded sales volume was only about 1,650 units, equivalent to an absorption rate of 16%, down 67% compared to the previous month.
Townhouses and villas are also in a difficult situation when there are about 7,750 products brought to the market but only 137 units have been successfully traded, an absorption rate of about 2%, down 70% compared to the previous month.
Weak purchasing power also spread to resort real estate. Resort villas only sold 25 units, down 76% compared to June. Townhouses and resort shophouses did not generate transactions even though the primary supply was about 3,500 units. Condotel sold 105 units but the absorption rate was still only about 2%.
Poor liquidity has stalled sales plans. According to DKRA, last month new supply for sale decreased by 26% compared to the previous month, due to the cautious psychology of investors.
Data on the online market also shows that buying demand is cooling down. According to Batdongsan, in July the number of real estate listings across the country decreased by 9% compared to the previous month, while the level of interest from buyers decreased by 8%. In old Ho Chi Minh City, the number of listings decreased by 11%, while the level of interest decreased by 9%, while other provinces and cities decreased by 9% in listings and 8% in interest.
By segment, private homes in Ho Chi Minh City were most clearly affected when the number of listings decreased by 19% and the level of interest decreased by 13%. Real estate decreased by 11% in both indexes. Street-front houses decreased 8% in listings and 10% in interest. Apartments had a milder adjustment, with listings down 3% and interest down 5%.
According to research units, purchasing power is weakening in the context that buyers are faced with high real estate prices and high borrowing costs. For apartments, primary prices in many areas are still high. According to DKRA, new projects launched for sale in the month reached the threshold of 80-100 million VND per m2 in Ho Chi Minh City, Tay Ninh from 38-68 million VND per m2 and Dong Nai from 37 to 66 million VND per m2. High prices force people with real housing needs to carefully calculate their ability to repay debt.
Meanwhile, investors are also more cautious with financial leverage because capital costs increase and the prospect of short-term price increases is no longer attractive enough. This pressure is more evident in townhouses, villas and resort real estate, products that require large amounts of capital.
In the context of weak demand, investors are forecast to be more cautious in bringing products to the market in the coming time. Instead of selling large quantities at the same time, businesses tend to divide the shopping cart into smaller baskets, selling while assessing demand before deciding on the next batches. Some projects may postpone the opening date to the end of the year to consolidate bookings and prepare more appropriate policies.
Primary prices are forecast to tend to move sideways instead of falling sharply on the price list. Instead, investors can increase discounts, extend payment schedules or support interest rates to reduce financial pressure on customers. This approach helps businesses stimulate transactions without significantly adjusting the announced price.
According to experts, real housing needs and customers buying for long-term savings are still the main demand forces in this period. Projects with complete legality, good progress, appropriate prices and attractive financial policies are still able to maintain transactions, while products with high prices or heavy reliance on leverage will continue to face difficulties.
