“I Desperately Want to Sell My Land, But No One is Buying”

Many investors are facing liquidity issues with their land holdings, according to recent reports. Mr. Kh, a resident of Thu Duc City, Ho Chi Minh City, shared that despite his eagerness to sell his land plots adjacent to Ho Chi Minh City, which he purchased in late 2021, he has been unable to find buyers. Mr. Kh and his friends had taken out bank loans to invest in these properties.

By mid-2022, as the land plots showed signs of appreciation, the real estate market began to fluctuate. In September 2022, Mr. Kh listed a plot of land in Dong Nai Province for sale at a price 200 million VND higher than the purchase price, but to no avail. Concerned about liquidity, Mr. Kh continued to offer his land plots for sale, but has not been able to close any deals as of now.

Another case involves a land plot owner in Ho Chi Minh City who has been trying to sell their property since the beginning of 2023 without success. The owner has adjusted the asking price twice and engaged additional real estate brokers to list the property. However, the asking price remains higher than the average price of similar land plots in the area, deterring potential buyers.

According to the owner, some neighboring land plots have been reduced in price to 2.3-2.5 billion VND per plot of over 50 square meters due to the urgent need for cash. Meanwhile, the asking price for their plot is 2.65 billion VND (the desired selling price), which is considered too high by brokers. In reality, the owner has already incurred a loss of 150 million VND compared to the purchase price at the beginning of 2022. As they are unable to lower the price further, the land plot has remained unsold for over a year. This is another example of an investor wanting to sell but facing liquidity issues.

In fact, investors struggling to sell their properties and facing liquidity issues have been a common occurrence for almost two years. Even with attractive locations and potential for price appreciation, buyers are hesitant due to the higher price compared to similar plots sold previously. According to real estate brokers, buyers continue to pressure sellers for lower prices, even as the supply of well-priced properties diminishes.

Well-funded investor groups are still selective, only pursuing properties with truly attractive prices. They also conduct thorough research on distressed sellers who are desperate to sell to repay bank loans. Additionally, many investment groups take advantage of the challenging economic climate to drive down prices. In some cases, investors who have waited too long are forced to sell at lower prices to recoup their money and settle their loans.

Previously, there were predictions that the land market in the southern region would recover in terms of demand from the end of 2024 onwards. However, a comprehensive recovery is yet to be seen. Furthermore, thousands of land-related dossiers in Ho Chi Minh City are awaiting guidance on the new Law for tax payment, which has cooled down transactions and demand since August 1, 2023.