Demand for individual houses will increase at the end of 2023

Private houses in car alleys are sought after by many customers

According to a recent survey by market research companies, currently, private houses in Ho Chi Minh City are becoming a product with an increasing number of customers looking to buy and are expected to have many successful transactions in the last months of 2023. While villas and townhouses in urban areas and projects are still quite reserved for buyers, houses in alleys, especially car alleys, are sought after by many customers. In particular, houses with a selling price of 3-6 billion VND have the largest and fastest transaction volume.

A survey by Batdongsan.com.vn shows that, compared to the previous period, the price of individual houses in Ho Chi Minh City has decreased significantly. The fact that many private houses have decreased by up to a billion VND is quite unusual compared to the market in the past 5 years. There are many reasons, including many investors using too much leverage and being forced to sell off their assets. There are also many cases where, due to economic difficulties, they need to sell their houses at this stage and have to accept deep discounts to sell quickly... In general, the price of private houses in Ho Chi Minh City traded during this period has clearly cooled down. Most are on average 10-15% lower than the selling price in early 2022.

Specifically, a private house in Go Vap District (HCMC) with a car alley that used to cost 5.2 billion VND has just been successfully closed for only 4.5 billion VND, a reduction of 700 million VND compared to before. Similarly, a private house in the alley leading to Phan Van Tri Street (Binh Thanh District) is being offered for sale at 6.5 billion VND for an area of 55 square meters. Just about a year ago, this house was valued at more than 7 billion, now the owner needs money so he is forced to lower the price. In areas where private houses always receive attention and searches from customers such as Phu Nhuan District, Tan Binh, Binh Thanh..., some private houses in small alleys are being offered for sale at an average reduction of 500-800 million VND compared to the selling price in 2021-2022. Houses located in car alleys are more popular with buyers and have more successful transactions, but they also have to offer an average price reduction of 7-10%. Thanks to the price reduction and being in the segment serving real housing needs, individual houses have many successful transactions, although at this time the general liquidity in the real estate market is still weak.

Ms. Phuong (a real estate broker in Go Vap District, Ho Chi Minh City) said: "Since the beginning of August 2023, I have successfully closed 2 private houses and have 1 house waiting for customers to transfer deposits. This is an unbelievable number for me, because since the real estate market "froze", I have only now had a successful transaction again."

“There are some regular customers asking me to find private houses in the inner city of Ho Chi Minh City. Most of the customers' needs at this time are houses with nice areas, car alleys and especially "soft" prices, the average price is under 6 billion VND. Private houses in alleys are the best sellers now, many people are looking to buy and all are buying to live in. Mainly because the price of private houses is good at this time. When the seller needs to sell, they do not haggle or shout prices. Buyers who want to buy will only pay a slightly lower price and not force the price like buying land,” Ms. Phuong shared.

Mr. Thanh - Director of a real estate brokerage company said: "After many years of only increasing, now the price of private houses in Ho Chi Minh City has decreased quite a bit. Because this type of house requires large financial resources, quick payment and is not supported like apartments or townhouses in projects, there are not many customers with available finances. Therefore, many homeowners who need money and want to sell their house quickly will choose to compromise, bringing the price of private houses to a more reasonable level."

According to Mr. Nguyen Quoc Anh - Deputy General Director of Batdongsan.com.vn, the situation of price pressure on private houses in the inner city of Ho Chi Minh City is not as common as land or townhouses in the suburbs. Partly because this private house segment does not have many sources of supply for sale. Partly because private houses in the past 5-6 years have only increased, not decreased. Only when the market is in recession like now, the price has decreased, so for those who have real needs, now is a good time to spend money. "Private houses in Ho Chi Minh City are still a type of interest and have high demand. Besides the preference for townhouses and houses in the inner city, the number of immigrants to Ho Chi Minh City continues to increase. Therefore, purchasing power will continue to increase in the coming time when the market is better" - Mr. Nguyen Quoc Anh analyzed.

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