The Truth about Continuous Real Estate Brokerage in the South
A seasoned real estate broker in Ho Chi Minh City recently shared that while the real estate market has improved compared to 2023, it has not reached a feverish state. Most of the transactions during this period have been for individual houses, with prices reduced by 500 million to 2 billion VND compared to the peak in 2019. The majority of land plots are also properties that were previously unsold but have now found buyers due to increased demand.
Opposing Trends in the Southern Real Estate Market
Interestingly, the southern real estate market is currently experiencing two contrasting situations. Some investors are holding back their properties, waiting for prices to rise. On the other hand, some are taking advantage of signs of increased market demand to put their properties on the market. The latter group usually consists of investors facing financial difficulties, burdened by loans and unsuccessful attempts to sell. Now that there are signs of demand, they are seizing the opportunity to sell at the previously advertised prices.
Increased Activity in the South
According to the broker, there is a growing trend of brokers continuously closing deals in certain areas of the South (including individual and collective sales). These brokers have been in the industry for a long time and have managed to sustain their business even during the most challenging times. They have a pool of regular clients and often approach them when they have promising properties. In the past two months alone, this broker has concluded five transactions involving land plots and houses. While this number may not match the levels seen in the 2020-2021 market, it is a remarkable achievement compared to the entire year of 2023.
Not only individual houses but also townhouses, villas, and rental factories have seen a resurgence in transactions. At the DTL urban area in District 9, Ho Chi Minh City, many brokers are actively selling both primary and secondary properties. Some experienced brokers have closed dozens of deals within a few months, each valued between 7-15 billion VND. The majority of buyers are investors from the northern region or individuals who have received compensation for their land to make way for the Belt and Road project and road expansions in the Eastern part of Ho Chi Minh City. They are looking for alternative properties in nearby areas. As a result, brokers in the South have been able to secure substantial deals from this pool of clients.
However, it has been found that in some areas, multiple broker groups are colluding to create an artificial market that appears to be vibrant. The transactions they post on personal websites or within groups are merely virtual. Some land plots remain unsold, yet multiple brokers claim to have already made sales.
The Current State of the Market
In recent times, the real estate market in the South has shown signs of activity, but it has not yet reached a booming level. Due to a shortage of primary supply, brokers primarily focus on selling secondary properties. However, the supply of secondary properties is limited, and only investors facing significant financial strain are willing to sell. Nevertheless, transactions only occur for properties with reduced prices. Properties priced at market value (compared to the beginning of 2022) are still difficult to sell.
In conclusion, the real estate market in the South is witnessing mixed trends. While some properties are being eagerly bought and sold, others are facing challenges in finding buyers. Brokers play a pivotal role in these transactions, with some successfully closing deals in a continuous manner. However, caution should be exercised when it comes to certain broker groups that collaborate to create an illusion of a thriving market.