Real estate investors rush to sell amid fear of prolonged pandemic

Many real estate investors have started to sell units as quickly as possible as fears that the Covid-19 pandemic may still develop despite the possibility of a vaccine.

illustrative image

A real estate investor in Ba Ria-Vung Tau Province said he bought several villas of the Barya Citi Ba Ria Project two years ago. It has a prime location only an hour away from HCM City, near the centre of Ba Ria-Vung Tau and good infrastructure so he expected to make a huge profit in the long term.

However, because of Covid-19 and pressure from the banks, he had to find ways to sell the villas as quickly as possible and accepted that he would only break even.

Thu, a customer of Flora Novia Project in Thu Duc District, HCM City, said she had taken a leave of absence when Covid-19 broke out so the family wholly depended on her husband's salary. Her husband's company reduced wages by 30% so they were having difficulties in paying the interest on loans.

Van Nhan, a businessman in HCM City, said his acquaintances sent him a list of many projects but he had to consider everything very carefully because it was very difficult to sell units at this time.

Hoang Van Ninh, CEO of Dong Nam Bo Housing Development Company, said there was no sell-off. Short-term investors will have to sell their products when the market is slow but long-term investors already have their financial plans so they will not sell their units so easily. Moreover, there are many projects that are near completion which mean the customers have already paid 95-100% of the prices.

"Many companies are buying back units from customers at the original prices so investors should consider carefully. They can negotiate to extend the deadlines for payments. Many companies are willing to negotiate," he said.

Small and part-time investors would face the most difficulties due to slow transactions. Economist Pham Hai Long said many people wanted to sell houses and land when if the economy couldn't recover right away, but it's also a time for large investors to make good deals.