Vietnam’s Property Market is struggling just to survive during Covid pandemic
Vietnam has now had to handle four waves of the Covid-19 pandemic, since it broke out in early 2020, and this has left the country’s property markets to have to cope with some of the hardest months in its history.
Marketing and business activities are at almost at standstill, while promotional events to introduce new projects are on hold.
Potential buyers or investors are not being permitted to visit project sites, especially during lockdowns, leading to huge losses according to a recent report by Saigon Online.
This continual dire situation is compelling investors to find ways to sustain themselves.
One realtor even suggested that if this situation were to continue for another two to three months, some investors would be left with no choice but to sell at discount rates to cut losses, especially products valued above VND 10 bn.
There is a big concern looming where many customers who invest with financial leverage, especially through loans from banks, will be forced to sell at a discount to cut losses.
According to many experts, if there is a stable financial source, investors and customers will consider buying real estate at competitive prices.
As many investors have problems with investment capital flow, and income is affected by the pandemic, and they cannot pay banks, therefore many must sell off some assets just to survive.
During these difficult times, many investors are willing to sell almost VND 50 mn or even VND 100 mn lower than market price, just to resolve their financial problems.
In addition, buyers with stable finances from many sources, might consider buying more, using bank loans about 20% to 30% of the property value.
However, the pandemic is showing no signs of relenting, so buying will be cautious, and only a few transactions that are legally cleared and competitively priced will take place.
Looking back at the first six months of the year, the market can be summarized as optimistic, cautious, and waiting.
But for how long?
This means Vietnam’s property market will have to continue to wait for any opportunities in the last six months of the year.
What opportunities will arise in the next six months of the year is however completely out of their control, as it will depend entirely on the pandemic situation, and not on the market.