Housing prices drop as owners slash quotes to clear debts
Asking prices for apartments and landed properties in several areas of Ho Chi Minh City are falling sharply as owners lower prices to service bank loans. Ho Chi Minh City property market cools as sellers cut prices Central bank steers property credit toward social housing and industrial growth New peak campaign to strengthen intellectual property protection launched
Housing prices in multiple regions of Ho Chi Minh City are experiencing a decline as property owners are reducing their asking prices to manage their debts. This downward trend is attributed to several factors including higher interest rates, strict lending policies, and cautious buyer behavior.
Many owners, particularly those who have taken out loans, have lowered their prices to facilitate loan repayments. For instance, Thanh Thuy, a resident of Hanh Thong Ward, borrowed VND2 billion to purchase a 54-square-meter apartment in Binh Thoi Ward. Her monthly payments now exceed VND30 million, leading her to list the apartment at VND3.5 billion.
Similarly, another resident who bought a one-bedroom apartment in Phu Loi Ward in 2021 has seen little interest, listing the property at VND1.1 billion, down from VND1.5 billion initially expected. The borrower is considering price reductions or seeking alternative means to repay the loan, which now totals over VND637 million.
In Phuoc Hoa Commune, even with developed infrastructure and amenities, the lowest plot price has dropped from VND13 million per square meter to VND11 million per square meter, yet many potential buyers remain hesitant due to high-interest rates and uncertain credit periods.
High borrowing costs and tightened credit conditions are preventing a market recovery, with current rates reaching up to 12-14 percent annually. Property owners and buyers are exercising caution, leading to a shortage of affordable housing options, especially for middle and low-income earners. The housing market in HCMC continues to struggle, with demand remaining cautious due to the high interest rates that increase capital costs and repayment burdens.
Written by urgent.news from SGGP English Edition Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
