Phu My Hung (PMH) township - the dream living area of many people both local & foreign, was always of high rent demand in Ho Chi Minh City. At the moment, however, PMH is suffering from terrible effects of the Covid-19 pandemic.
(Leasing & selling ads seen everywhere in PMH. Photos: VnInvestors.com)
Sky Garden 3 had high leasing occupancy before 2020 with monthly rental of around 700usd for an apartment unit of 72m2. However, in June, rent of this unit even came down to below 500usd but no tenant and you can find an apartment like this with even below 400usd. A townhouse on Ha Huy Tap Street – a main road of PMH, used to have a rent of 3,200 USD before Covid-19, was decreased to 2,500 USD in June and now even below 2,200 USD, but there’s no tenant.
(Bui Bang Doan Str., PMH. Photo: VnInvestors.com)
There have been more and more vacant premises that can easily found along the main streets in PMH such as Bui Bang Doan, Nguyen Duc Canh, Tran Van Tra, Pham Thai Buong, Ha Huy Tap, Nguyen Van Linh. You will find out thousands of results when searching the word “renting/buying houses in Phu My Hung”. Moreover, brokers will give you a lot of exclusive discounts that you could have never had in your life.
According to experienced brokers in Phu My Hung, this situation is really serious. Some investors accept losing even more than16 billions VND to try to dispose their new shophouse. Many people, who have bought apartments with installment payments on the project construction progress, having now lost their jobs or their business, fail to pay as committed and have to accept losing their money for disposal of their houses with low price to other investors, otherwise the case will be even worse for breaching the contract. Even so, not many of them are lucky to find a buyer during this time.
(July 2020, photo: VnInvestors.com)
There are lots of factors affecting the house price, but the 2 biggest factors are purchasing power and rent demand, which both have decreased seriously. The incomes of brokers has fallen, too; many brokers have to change their job, do everything even Grab bike jobs to survive without any clue about the recovery of the market.
(Empty shopping center and restaurants. July 2020, photos: VnInvestors.com)
The news of Vietnam preparing to reopen its border for international visitors at the beginning of July (publised at the beginning of June) make people feel so excited and eagerly expect the market to recover in a short period of time. Yet, the news of the second outbreak in China, Japan, Korea, Singapore and serious situation in EU countries, North America, South America, the Middle East, ... did prove the fact that reopening the border to welcome international visitors is far more distant. And now the 2nd outbreak came back Danang 3 week ago and is spreading the whole country with very high speed making the situation worse.
(Translated & edited in English
by Xuan Thanh)
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