The townhouse segment in Nghe An remains gloomy.

Due to the huge pressure of paying off principal and interest to banks, recently many investors in the segment of adjacent villas worth 5-10 billion VND/unit have had to sell their investments at a deep loss, but it is not easy to sell.

Mr. Tran Van Tien, an investor in Dien Chau district, bought a townhouse in Thai Hoa town and shared: In 2021, during the "real estate fever", he bought a villa worth more than 5 billion VND in Thai Hoa town, paid about 3.2 billion VND in advance, and borrowed the remaining 1.8 billion VND from friends and the bank. Initially, he thought he could resell it to "make a profit" before the deadline to pay the bank interest, but unexpectedly the real estate market fell into a frozen state, so I could not "sell the goods" as quickly as expected.

Currently, Mr. Tien is selling the villa at a loss of 4.2 billion VND (a loss of 800 million VND, if including bank interest, he would have to suffer a loss of over 1 billion VND, but has not been able to sell it yet). In Thai Hoa town, there are currently quite a few villas that investors bought to "surf" from 2021-2022, most of which are currently "stuck". Observing that a series of villas here are closed and quiet, no one lives or does business, some have signs for rent but no one rents them.

Investors who "surf" and then "get stuck" like Mr. Tien are not uncommon in the context of the real estate market falling into a slump over the past few years. Accordingly, at this time in some villas and townhouses in Vinh city, signs have appeared advertising houses for urgent sale, cutting losses... with discounts from 20 to even 30%, however, it is very difficult to transact.

An investor in Vinh city added: Also in 2021, I bought a villa on Nguyen Duc Canh street, Vinh city for 15 billion VND. Now, I want to cut the loss and sell it for 13 billion VND (reduced by 2 billion VND). For more than 3 months, I have asked brokers to help me sell it, but they offered quite cheaply, so I have not sold it yet.

Some adjacent villa projects on Hong Bang Street, Vinh City, at this time the investor has super promotional policies, such as buying a villa with an area of ​​80 - 154 m² priced from 11-18 billion VND/unit, customers will be given a car worth nearly 2 billion VND. Or some other projects also create favorable conditions for customers in the process of borrowing capital, supporting interest rates during the prescribed time...

According to some real estate brokers, currently, the most popular real estate market is still apartments and land in the suburban areas of Vinh city and neighboring districts. The above two segments have moderate prices so they are quite easy to trade. While the price of adjacent villas has dropped sharply, the transaction volume of this segment is quite low because not many investors have such a large amount of cash. Not to mention some customers like to buy land to build houses according to their preferences, because adjacent villas in urban areas are only built according to a model, similar in architecture.

Mr. Nguyen The Phiet - Head of Housing and Real Estate Market Management Department, Nghe An Department of Construction said: In recent years, Nghe An has built many adjacent villa projects, mainly concentrated in Vinh city, Dien Chau, Thai Hoa town, Do Luong... so the supply for adjacent villas is relatively stable. Among the above projects, Eco Central Park Vinh project has a lot of transactions, because customers see the potential and many utilities in this project.

Actual developments show that the market for townhouses in Nghe An is almost at rock bottom in terms of liquidity. The reason is that although prices have decreased, they are still high compared to their real value. Therefore, investors with strong cash flow can expect this segment to flourish in another 3-5 years.