In the third quarter, the southern provinces only sold 28 land plots, down 98.5% compared to the previous quarter, the secondary selling price dropped by 5-7% compared to May.
According to DKRA Vietnam’s land market report, the liquidity of the land plot market in Ho Chi Minh City and 4 neighboring provinces (Binh Duong, Dong Nai, Long An and Ba Ria – Vung Tau) was quiet throughout the third quarter. The overall demand of the market is very low because in the months of July, August, September, many southern provinces tightened social isolation measures. The liquidity of the secondary market (investors buy and sell) is very low, there is a tendency to decrease prices locally in a project and area, the decrease ranges from 5-7% compared to before the epidemic. boomed in May.
According to the survey of this unit, the situation of land plot price reduction of 5-7% only appeared locally in a few places on the secondary market, not on a large scale, so it is not representative of the whole market. The reason for the price drop is that some investors need to release their goods to relieve financial pressure.
In the past three months, Ho Chi Minh City and 4 neighboring provinces only recorded 2 projects for sale in the next phase of opening sale, providing 118 products to the market, concentrated in Long An and Ba Ria – Vung Tau, while Ho Chi Minh City, Binh Duong, and Dong Nai have no land for sale during the Covid-19 quarantine period.
The Ho Chi Minh City market has continuously lacked new supply for sale in recent years. Factors such as investment costs, increased infrastructure development (compensation, site clearance), tightening of the legal corridor in licensing new projects, shortage of land fund… have affected. continuously to new supply in Ho Chi Minh City market recently.
The supply in the past 3 months was only equivalent to about 4% compared to the previous quarter but only 28 plots were sold, down 98.5% compared to the second quarter (1,826 plots were sold). This unit assessed, the liquidity of the land plot market plunged in the third quarter mainly due to the blockade of Ho Chi Minh City and some southern provinces, causing transactions to be stopped because customers could not move to see the land in this period. . Because before the fourth epidemic broke out, each quarter still recorded sales of over 1,000 land plots.
Specifically, in the second quarter of this year, the total supply of land plots in the five southern provinces reached 2,913 products, sold 1,826 products, mainly transactions took place before May. Meanwhile, in the first quarter of the whole consumption market. 1,146 floors out of a total basket of 1,196 products.
DKRA forecasts that the land plot market may gradually recover when Ho Chi Minh City and the southern provinces gradually lift the blockade, have a plan to live with the pandemic, investors can move to see the land and carry out other activities. direct transaction. However, the recovery of the land plot market will still depend greatly on the ability to control the disease.