Unable to find tenants for a 3-storey street-front house on Dien Bien Phu street in district 3 for the last three months, Bich Ngoc, the owner, decided to sell because she needs money for her business.

“Our business has become stagnant because of Covid-19. I need money to maintain it, so I will sell the house at a price 15 percent lower than the bid price in 2019,” she said.

Many townhouses in inner districts of HCM City are rented as retail premises. Houses on streets in the central business district such as Dien Bien Phu, Nguyen Dinh Chieu, Nguyen Thi Minh Khai, Nguyen Binh Khiem and Nguyen Tri Phuong are usually not for sale.

However, things are different now. More and more signs advertising house sales can be seen on the streets.

Nguyen Manh Hung, a real estate broker in district 3, said one year ago, a foreign business sought to buy a streetfront house on 3/2 Road but no landlord was willing to sell. They only accepted long-term 20-year rental.

“It is surprising that so many houses are up for sale now, ” he said.

Hung said that many people have to sell property because of the impact from the pandemic.

“They have to sell as a last resort,” he said.

Nguyen Vinh Phat, director of a real estate brokerage firm, said while supply is profuse, demand is not high.

Streetfront houses, especially ones in the central area, are valuable properties which are 2-3 times more expensive than others. The only interest is from people with powerful financial capability, businesses seeking long-term premises, big international brands, and big investors.

“Businesses have suffered heavily from Covid-19. Demand for houses is not high at this moment,” Phat said.

However, though landlords understand they won’t be able to sell houses at 2019 prices, they have refused to offer good discounts.

According to Batdongsan.com.vn, in the first three months, interest in townhouses decreased by 33 percent q-o-q, and asking rents also dropped by nearly 11 percent, while selling prices tended to be the same, or decreased by 2-3 percent in districts 1, 3, 7 and 10. 

Thanh Mai

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