Vietnam property market ultimately to bottom out, insiders say

Investors are interested in comprehending when Vietnam property market has reached its bottom, but industry insiders say the scenario has just begun and further drop can be anticipated next year.

Has Vietnam's property market reached its bottom?

The secondary market in southern Vietnam has become vibrant in current weeks with investors facing a financial crunch selling properties at 15 - 20% discounts. In fact, since the previous month, several real estate developers have been selling apartments and villas at 40-50% price declines to buyers who pay in full.

In some property market forums currently, a lot of investors asked in a forum if the real market had reached its bottom. And received conflicting answers. 

What do industry insiders think of Vietnam's property market?

CEO of investment consultancy Mogin Holdings - Luong Dinh Thuy Van said it was difficult to say it has reached the bottom. Although many developers and sellers are claiming to sell at a loss, prices haven't declined by much. 

The deals only seem to show that sellers are cutting down on their profit margins at a time of cash crunch. Investors should keep observing the market and comparing prices with that of other countries. She also advised against buyers making quick deals just because of getting advice from someone.

During this time, cash is precious, she said, adding that investors should only purchase properties that are legally grounded and avoid uncompleted projects that carry risks. Along with that, Tran Khanh Quang, CEO of the property developer Viet An Hoa said that the selloff that year was only the beginning and more financial challenges could be anticipated in the following years, in particular for those who used loans to invest. 

Additionally decreases in prices for houses are anticipated next year at half the current price. Pham Cong Chanh, CEO of developer Phu Vinh Group, said: " There are many uncertainties that have an influence on the real estate market next year, such as policy decisions of the U.S. Federal Reserve, amendments to land laws, and credit tightening and issuing bond". There might not be solutions to these issues until the middle of 2023 and new policies also might not affect effectively until the following 6 to 12 months. Therefore, investors should be prudent now. 

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