Blank November for townhouses, villas in HCMC area

One townhouse and villa project supplied 34 units to Ho Chi Minh City and surrounding areas in November, but no transaction took place in this segment, according to realty services firm DKRA.

This project, located in Thu Dau Mot town of Binh Duong province, offered its units in the VND11.4 billion ($470.490) to VND3.6 billion ($148,576) price range.

The new supply in the townhouse-villa segment marked a month-on-month and year-on-year decline of 29% and 88%, respectively, the consultancy said in a new report.

HCMC and the provinces of Long An, Dong Nai and Ba Ria-Vung Tau continued to see supply scarcity. However, market demand was at a very low level, with transactions only seen in previously launched projects.

In October, the HCMC and surrounding areas market put on sale 13 projects – 10 new projects and three in their next phase – with 48 units, of which 10 were sold.

Dong Nai made up the majority of the October supply in the townhouse-villa segment with 30 units, and the remaining 18 were in Binh Duong. The highest price in the primary market in Dong Nai was VND62.2 billion ($2.57 million) per unit and the lowest was VND4.6 billion ($189,850) per unit. In Binh Duong, the respective figures were VND4.1 billion and VND3.6 billion.

Meanwhile, a report by Vietnam’s leading real estate website Batdongsan.com.vn shows that in the third quarter, customer interest in low-rise real estate declined seriously.

In particular, October searches for townhouses, semi-detached villas and private houses plummeted 52%; 48% and 42% year-on-year. The report attributed this situation to very high selling prices and difficulties in accessing capital.

Dinh Minh Tuan, southern region director of Batdongsan.com.vn, said high prices was a major barrier for buyers wishing to buy low-rise houses at the moment. Most types of low-rise real estate are priced much higher than people's incomes and it is hard for customers to get loans.

"For the low-rise building segment to recover liquidity, it may take a long time, possibly until the third quarter of 2024," Tuan said.