Real estate projects in Thu Thiem area in the eastern part of HCMC. Photo by VnExpress/Quynh Tran
The main market for townhouses and villas in HCMC fell to its lowest level in August, with just four sales.
Property service provider DKRA Vietnam said in a note that 66 townhouses and villas were offered for sale during the month.
In June, 40 were sold while in April the number was 282. There has been a crisis in the eastern part of the city for the past four months.
The director of a company developing a housing project in the town of Thu Duc said sales of townhouses and villas began to drop sharply in May.
Experts pointed to the lack of financing available from banks, saying that a townhouse or villa costs tens or even hundreds of billions of dong (1 billion VND = $41,667), and buyers are therefore more likely to borrow part of the amount.
Another reason for the lack of transactions is that the seventh lunar month (from July 29) is considered inauspicious and so few people buy then.
Nguyen Loc Hanh, CEO of Asia Gem Real Estate Investment Joint Stock Company, said VnExpress that liquidity has dried up in the real estate market since April due to the tightening of bank credit.
He predicted that sales of townhouses and villas would improve during the peak season at the end of 2022, but warned that the overall market would not return to its pre-Covid peak and that the secondary market would be better than the market primary.