Property owners across Ho Chi Minh City are slashing asking prices as high interest rates and tighter liquidity continue to suppress demand, leaving many homes and land plots unsold despite substantial discounts.
High interest rates are weighing on liquidity in the property market (Photo: Lam Giang).
Thu Hong, a resident of Binh Trung Ward, has been trying to sell a 4-by-15-metre plot of land on a 12-metre-wide road in Long Truong Ward.
She initially listed the property for VND 3.9 billion (USD 148,98 million) late last year and even secured a prospective buyer who was prepared to place a deposit.
However, the buyer later withdrew after Hong decided to sell the land to finance the purchase of a three-bedroom apartment in the former District 2 area. After months without success, she reduced the asking price to VND 3.7 billion (USD 141,34 million).
Even after lowering the price, she has struggled to attract buyers despite hiring several real estate brokers and paying for online advertising.
"If I find a serious buyer, I'm willing to reduce the price further to around VND 3.5 billion (USD 133,69 million) so I can move ahead with buying a new apartment. But even after cutting VND 400 million (USD 15,28 thousand) from the original price, I still haven't been able to close a deal," she said.
The slowdown is not limited to land plots. Apartment owners in An Khanh Ward and Binh Trung Ward said units priced between VND 8 billion and VND 10 billion (USD 305,58-381,98 thousand) have been discounted by VND 500 million to VND 1 billion (USD 19,10-38,20 thousand) compared with a few months ago, yet transactions remain sluggish.
Nguyen Thanh Hoi, another homeowner in Ho Chi Minh City, has faced similar difficulties selling his house in the former Binh Tan District.
The 4-by-11-metre house, located in an alley, was initially listed for VND 6.8 billion (USD 259,75 million) late last year before being reduced to VND 6.2 billion (USD 236,83 million). Facing urgent family financial needs, Hoi recently cut the asking price again to around VND 5.5-5.6 billion (USD 210,08-213,90 thousand) for buyers able to pay in cash immediately.
"Even after reducing the price by more than VND 1 billion (USD 38,20 thousand), I still haven't found a buyer," he said.
According to property consultancy JLL Vietnam, around 4,100 new landed homes were launched during the first half of the year, mainly in large suburban developments such as The Global City, Senturia An Phu and Vinhomes Saigon Park.
The influx of lower-priced supply pushed the average primary-market price down to approximately VND 195 million per square metre of land, a decline of 56 per cent compared with a year earlier.
Nguyen Tat Thinh, a real estate expert, said prices have fallen across several market segments, but transaction volumes remain weak because both investors and owner-occupiers are adopting a cautious approach as borrowing costs rise and bank deposits remain attractive.
"People with available cash are choosing to hold onto it and wait rather than take the risk of buying property now," he said.
He added that property prices had surged over the past two to three years, meaning that even after recent declines, homes remain beyond the reach of many buyers.
Brokerage MBS Securities also said elevated interest rates are continuing to weigh on market liquidity, particularly as housing supply has increased sharply since late last year. With more projects available and borrowing costs remaining high, many buyers are delaying purchases in anticipation of further price declines.