Investors cut losses in commercial townhouses, “sheltering” in other real estate segments

In the past few years, when the Covid-19 epidemic raged, tourism activities were severely affected, resulting in a temporary freeze in the real estate market in Da Nang in some types. Accordingly, many shophouses in this area have also fallen into the state of “closed doors and bolts”, hanging signs for rent from 2020 until now, still no customers.

Mr. Nguyen Quang – owner of a shophouse said that in 2020, he bought a shophouse for nearly 6 billion VND in Lien Chieu. At that time, the broker advised him that after buying, he would have tenants immediately, earning about 20 – 30 million VND/month.

“At that time, I didn’t learn much, listened to brokerage advice, so I borrowed an additional 1.5 billion VND from a bank to buy it. After buying, I sent it to the brokerage to find tenants but no one. I lowered the rent from 25 million dong to 18 million dong, but there were no customers. Unfortunately when I finished shopping, the epidemic broke out strongly, tourism activities also froze since then. I had to take money from other businesses to pay the bank. while the shophouse is still lying motionless, I’m currently looking for someone to resell,” Quang shared.

Illustration.

Mr. The Hung – a broker specializing in selling townhouses and villas in the Da Nang – Quang Nam market said that the shophouse type is picky, most buyers have money available, buy it for a long time to wait for the price to increase, and do not look at work for them. Rent is important.

In other cases, people buy in and rent out profitable premises, they use great financial leverage, so when there are no tenants for too long, they want to sell to relieve the burden.

According to this broker, he and his colleagues personally from December 2021 until now have sold many shophouses in Lien Chieu, Son Tra and Hai Chau districts. Shophouses are being sold with prices ranging from 5 to 12 billion VND.

“Many cases accept a quick sale, suffer a loss of 400-700 million dong, before buying a shophouse with borrowed money. In some cases, the owner reduces up to 300 million, wants to sell to invest in the land plot segment, the price is cheaper but Even though the price has dropped sharply, the number of people interested and asking to buy is very small, mainly in Hanoi and Ho Chi Minh City, “he said.

Mr. Hoang Phong – a broker in the area said that he and his team are currently selling many other shophouses, of which some owners accept to sell at a loss of 300-500 million dong.

“Tourism has been closed for a few years, some real estate segments in Da Nang have also been severely affected. Now, they send me to resell and immediately find land to invest in investment capital”, Mr. Phong said.

According to the most recently published February 2022 real estate market report of batdongsan.com.vn, the interest level of the whole market in February 2022 decreased in all types compared to 2021, when the level of interest in the whole market in February 2022 decreased in all types compared to 2021, when the level attention to the whole page decreased by 14%, the amount of news posted on the whole page increased only 2%.

Specifically, sales of private houses fell the most with 21%, followed by apartment sales down 17%, land plot sales down 15%, villa and townhouse sales down 13% over the same period last year. The number of listings for land plots for sale increased the most with 32%, sale of street houses increased by 18%, sale of villas and townhouses increased by 14%, and apartment sales decreased by 14% compared to the same period in 2021.

Compared to January 2022, the level of interest increased in almost all categories. At the same time, the number of postings decreased in most types, only land plots increased.

The level of interest on the whole site increased by 23%, specifically, the sale of apartments increased by 23%, the sale of land increased by 17%, the sale of project land increased by 15% compared to the previous month. About the number of posts on the whole page increased by 2%, the sale of land plots increased by 8%, the sale of project land increased by 6%, and the sale of private houses; Sales of villas and townhouses all decreased by 6% and 9% respectively compared to January 2022.

Notably, the number of posts and the level of interest in land types and plots in most provinces and cities increased compared to January 2022, Da Nang ranked third in the country. Specifically, the leading interest level in the country is Lam Dong, up 41%; Khanh Hoa increased by 35%; Da Nang increased by 32%; Dong Nai increased by 25%; City. HCM increased by 18%; Hanoi increased by 8%; Bac Ninh increased by 6%.

The number of postings of the leading land type is Hung Yen, up 26%; Da Nang 25%; Binh Duong increased by 21%; Ba Ria – Vung Tau increased by 17%; Khanh Hoa increased by 13%; City. HCM increased by 6%; Hanoi only increased 1%.

According to Young Intellectuals