Mr. V purchased a residential plot for VND 2.7 billion in Thu Duc City at the end of 2021. By the end of 2023, he was offering it for sale at the same price. According to Mr. V, selling at the original price meant he had lost out on bank interest and brokerage fees. After almost a year of trying to sell through brokers, his plot remained unsold.
Recently, when a potential buyer inquired about the land, Mr. V quoted a price of VND 2.9 billion per unit. “I can only sell at that price; I cannot afford to lower it,” he said.
Our findings suggest that some investors are attempting to raise their selling prices as they perceive an uptick in market demand. In Mr. V’s case, despite increasing the asking price by VND 200 million, this new price is still modest and barely breaks even compared to his purchase price. As shared by this investor, he hopes for a market upturn to offload his plot without incurring losses.
In Ho Chi Minh City, numerous investors have halted sales and relisted their properties at higher prices. They anticipate that the improving market presents an opportunity to sell at a premium. Among them are investors facing cash flow challenges but still determined to “hold out” for higher prices. This strategy of withdrawing listings and re-offering them at higher prices reflects investors’ optimism about positive signals in the land market, specifically, and the real estate sector, in general.
However, according to brokers, not all investors who raise their asking prices succeed in selling. In some cases, after withdrawing their listings and increasing prices, brokers are reluctant to take on these properties. Given the current market liquidity challenges, asking prices higher than the market average make it difficult to find buyers.
Presently, land plots and houses in Ho Chi Minh City’s peripheral areas that are sold successfully are typically priced 10-20% lower than in early 2022. Although the pace of secondary price declines has eased compared to the same period last year, financially capable investors remain vigilant in seeking out bargain deals. Instances of haggling and price pressure persist in some segments. If homeowners or landowners are genuinely in need of funds, they may accept selling below cost.
“It is quite rare in the land market to find investors openly advertising loss-making or deeply discounted sales. However, some landowners may further reduce their asking prices if their properties remain unsold after a certain period. This outcome depends on price negotiations between the two parties and usually occurs when the landowner faces a cash crunch,” shared a broker in Ho Chi Minh City’s eastern district.
Proposed Planning for Adding 2 New Cities in Ho Chi Minh City
According to Architect Ngô Viết Nam Sơn, Ho Chi Minh City should consider planning two cities within the city in the south and north.
Astonishingly high price for old and dilapidated apartment buildings reaching nearly 200 million VND/m2, rivaling the most luxurious condominiums in Hanoi
Old collective apartments with prices starting from 100 million VND/m2 are usually the first-floor units that can be used for commercial purposes, while the upper-floor units are priced at 60-80 million VND/m2 for residential purposes.
Investing in a volatile market: Should beginners consider putting money into high-yield bonds for 10-30% yearly profit?
Short-term stock market trading has proven to be a risky venture for many investors, leading to substantial losses. However, there are a few select open funds that have managed to achieve impressive returns, reaching up to 30%.
Choose stocks for “Tet” festival celebrations
Investors should consider choosing stocks in the banking industry with good profitability, healthy real estate, and abundant clean land reserves. In addition, the group of stocks in infrastructure investment, iron and steel, and construction materials should also be considered.
