Investors have previously advertised discounts of up to 50%
In the first quarter to the second quarter of 2023, Cu Chi land plots in some places have reduced prices by 40-50% compared to the price at the beginning of 2022. The common reduction ranges from 15-30%. At this time, investors accepted losses but the market almost had no transactions. Specifically, a land plot with an area of 80 – 100 square meters located on Tran Van Cham Street (Tan Thong Hoi commune) was previously advertised at a price of 22-26 million VND / m2, but by August 2023, the advertised price was only 13 – 16 million VND / m2. Currently, this level of reduction remains but the landowners still haven’t sold their properties.
From the period of 2017 to early 2022, the Cu Chi land market saw many local land fever episodes. Real estate prices increased several times. This area’s market began to cool down in late 2022 and has continuously lost value. The Nguyen Thi Ran Road area (An Nhon Tay commune) experienced a sudden increase in prices but now has quiet transaction activity. According to some brokers’ surveys, the Cu Chi land plot segment began to lose value from the end of 2022, with a decrease of about 10-15% in the first quarter of 2023. This market continued to plummet, with a decrease of 30-35% in the beginning of the second quarter of 2023. By the end of the second quarter, some areas saw a decrease of up to 50%. By now, the situation of advertising with losses has cooled down, but the overall price still hasn’t returned to the beginning of 2022.
Image: Ha Vy
According to brokers, some customer-consigned products since the beginning of 2023 have not been sold. After a negotiation process, the landowners agreed to reduce prices to quickly sell the properties but the results were not promising. The majority of the products being advertised in this area are garden land plots with large areas, priced at 5-8 billion VND. Land plots with areas from 80-100 square meters and with land titles are priced at 1.5-2 billion VND, but the supply is not abundant.
Many investors are still holding on to land, waiting for a “wave” in the area. Many people know that the land prices in Cu Chi have decreased significantly but still don’t want to participate in the market, instead they continue to observe and follow new policies that are more favorable for real estate investment.
Investor confidence returns due to urban planning information
Recently, 5 suburban districts of Ho Chi Minh City have been proposed to be developed into 3 cities. Specifically, Cu Chi is proposed to be developed into a city in the north along with Hoc Mon district. This information, along with clear positive transaction signals in the third quarter of 2023, has made investor sentiment more stable. The expectation of investors in planning and infrastructure may cause asset prices to increase again, which is understandable.
Having invested in 2 garden plots in Cu Chi since the end of 2021, Mrs. H, living in Go Vap district, Ho Chi Minh City, decided to keep the plots despite not being able to sell them after negotiating with the landowners to reduce prices. According to Mrs. H, although there were financial difficulties, she regretted selling the two garden plots at a loss as they were in a quite beautiful location. Therefore, she continued to wait for positive signals from the market.
Data from Nha Tot also recently showed that the segment of land plots under 3 billion VND and from 3-7 billion VND in Cu Chi has seen growth in the number of inquiries, with growth rates of 1% and 4% respectively. At the same time, compared to the second quarter of 2023, the supply of townhouses in the Cu Chi district recorded a growth rate of about 20% in the third quarter of 2023.
Investors have shown signs of renewed interest in land plots.
According to this unit, the level of interest in land plots in Cu Chi recently has seen growth compared to the first quarters in 2023. At the same time, the number of contacts after viewing advertisements in this area has shown positive growth, with an increase of 2.2%.
