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Vietnam home sales show signs of rebound despite low Q1 transactions

The supply of new homes slumped 52 percent in the first quarter

The property market in Vietnam sees a rebound amid Covid-19 pandemic, media reports said. Foreign investors are showing interest in purchasing properties after the country’s home sales slumped between 40 percent and 60 percent in the first quarter. The report is produced by Cushman & Wakefield Vietnam.

Alex Crane, Cushman & Wakefield Vietnam’s managing director, told the media, “Launches of new projects were naturally lower than at the same point last year, down 30 per cent and 60 per cent in Hanoi and Ho Chi Minh City, respectively as buyers became more cautious. This is despite developers offering attractive financial incentives, such as interest-free loans from banking partners and longer payment schedules.”

It is reported the supply of new homes slumped 52 percent in the first quarter, while sales slumped 55 percent in the same period. The data is produced by luxury property developer SonKim Land.

According to Real Capital Analytics, property investment in Vietnam has tumbled by $183 million this year. However, the demand from foreign investors in the country is surging.

The Vietnam property market scene remain positive despite the slump in home sales, supply and rent of new homes because the government has been successful in containing the spread of the virus.

For example, a residential project in Ho Chi Minh City has received interest from expats in Vietnam, foreign and domestic investors. The project is developed by Hong Kong developer Swire Properties and local firm City Garden JSC.

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