Of 5,000 units becoming available for sale in HCMC and its vicinity, only 75 were bought, according to a report by property consultancy DKRA Group.
The city’s neighboring provinces it studied were Binh Duong, Dong Nai, Long An, Ba Ria – Vung Tau, and Tay Ninh.
In the same period last year 16% of the supply had been sold, and the average absorption rate for the whole year was 21%, DKRA added.
A report by property listing platform Batdongsan said there has been a substantial recovery in the market this year, with strong demand for land and apartments. But villas and townhouses have seen declining buyer interest, it said.
In HCMC, searches on the platform for villas and townhouses accounted for less than 2% of total inquiry. In nearby localities the rate was 2-5%.
Vo Hong Thang, deputy CEO of DKRA Group, blamed this on “unappealing products” and sky-high prices. “The current supply of housing with land consists mainly of older stock relisted for sale and unsold inventory from 2024.”
In HCMC, villa and townhouse prices start at VND5.3 and can go up to VND700 billion. Prices in Dong Nai range between VND3.5 billion and VND228 billion. The large price tags have made investors reluctant to buy.
Cao Thi Thanh Huong, senior research manager at Savills HCMC, said newly launched villas and townhouses in the city averaged VND350 million per square meter, with 74% of supply priced above VND30 billion.
With buyers wary of high-value assets and hesitant to use credit, expensive properties struggle to find buyers, especially with their limited diversity and a stagnant secondary market, she said.
Most developers are avoiding outright price cuts and instead offering extended payment plans, she said. “However, these measures have yet to effectively boost liquidity as hoped.”
Research firms predict southern Vietnam will see 3,000-5,000 new units comprising land and housing this year.
Primary prices are expected to stay elevated due to rising costs. In HCMC, units costing above VND30 billion are set to predominate, while prices will hover around VND10 billion in provinces.
