Property liquidity in 2022 lowest in 5 years

The property agencies show the house and apartment sales volumes on record in the north and south declined propery liquidity to the lowest in 5 years. The report stated that the Hanoi apartment for sale market and some southern provinces have fallen throughout the year. 

House prices are expected to fall amid soaring mortgage costs - Lose of property liquidity

In the first two quarters, nearly 14,000 new apartments were launched, and some 75% of those were sold. In the third quarter, there were 1,250 apartments on the market, and the absorption rate dropped 52%. In the fourth quarter, the sales volumes were fall, with just 100 transactions completed, the lowest quantities for this year. Furthermore, the sales volumes of units sold during the peak season at the end of this year were down below the expectations of investors.

According to Batdongsan, this has been an unprecedented situation in the pre-Tet over the past five years. The period before the Lunar New Year holiday is the peak time for sales transactions. Many companies have already gone up discount rates to 40-50%, but the liquidity has yet to improve.Tet falls in late January 2023.

According to DKRA Vietnam's report, there were 1,385 apartments sold in HCMC in the first quarter of this year, a 68% drop in volumes from the previous quarter. The liquidity enhanced in the second quarter but weakened in the third quarter. 

In HCMC and southern provinces, over 200 apartments were sold in November, falling nearly 90% against the same period last year.

In the south, just four houses were sold in August, down 23 times against July and down over 70 times approximated to April.

Rental prices have grown on the back of escalating demand

New data shows rental prices rose at the fastest quarterly rate on record in October, with no relief in sight for struggling renters. Rents are rising due to the ongoing low volume of supply available for rent and the strong demand for rental accommodation. The housing rental market in Vietnam is unreasonably pricey, even more than in Europe, as it does not follow demand and supply.

"It is overvalued compared to other Asian megacities where wages are much higher. I definitely agree that the quality of those tenants (even 12-18 million/month) is low. The owner is just greedy; the demand is not high. And the quality of the apartments here is much lower. Rental prices currently do not make sense".

"75-80% of serviced apartments occupied. That's a vacancy rate of 20-25% and is nowhere even remotely high in demand for rentals. 5% availability or less is the definition of a high-demand rental market".

Tan Long Homes is a full-service sales agency specializing in the marketing and renting/selling off-the-plan residential developments throughout Hanoi's most sought-after locations.

Hotline: 0986 720 720 

More: 

Why is Starlake apartment for rent perfect for you?

Luxe features in Vinhomes Smart City rental apartments