Real estate investors under strong pressure to lower prices
By Trung Tin July 14, 2021 | 1:18 p.m. GMT + 7
The eastern area of HCMC. Photo by VnExpress / Quynh Tran.
About 20 percent of real estate investors are expected to have to cut prices by 5 to 10 percent in order to have money to restructure portfolios or to pay for installments due, experts say.
With sales sluggish amid the ongoing fourth wave of Covid-19, they will be forced to lower selling prices to get the money they need quickly, said Tran Khanh Quang, CEO of Viet An Hoa Real Estate Investment Joint Stock Company in HCMC. towards VnExpress.
Among the troubled investors, those who own over VND 20 billion (US $ 869,000) of real estate are likely to cut prices 5 percent, and those who own more properties could cut prices by 5 to 10 percent.
“July is a key period in the fight against the pandemic. In the second property market, there will be sellers, not buyers, which will put more pressure on investors to lower selling prices, ”he said.
David Jackson, general manager of real estate services company Colliers Vietnam, said if the Covid-19 pandemic situation extends for weeks, many investors who have borrowed money to buy real estate or who haven’t restructured their portfolios well will have to lower their portfolios Sell prices to limit losses.
The pandemic has severely affected the incomes of people and businesses, and this has resulted in a stagnant real estate market, he noted.
VnExpress studies have shown that there have been no price drops in the primary property market during the ongoing Covid-19 outbreak, but there are indications that this is happening in the secondary market. In late June, some investors cut condotel prices to cut losses or switched to other investment channels.
Huynh Phuoc Nghia, Senior Advisor at Global Integration Business Consultants Company in HCMC, said the pandemic is adjusting the real estate market to the real value of real estate. According to him, real estate prices have been inflated too much by investors and now some of them who rely on credit will be forced to cut prices.