Acquiring house or apartment following prices dropping?

colinoscapee wrote:

Getting most Vietnamese to drop their price is about as easy as finding a four-leaf clover.

I'm in the process of getting ready to move, lease ends 30th June.

So far I've seen them go:-
28mill down to 22mill
22mill down to 18mill
25mill down to 20mill

One even said pay one month bond the another months bond in 4 months, these are all houses in airport area, Tan Binh, Phu Nhuan, Go Vap all have said low rent this year then up 1 mill a month next year and same the year after that, so they happy to get you in and then steadily increase back to what it was before buy the looks.

They seem pretty happy to negotiate just to rent the empty houses out.

I'd say give it a go and see how low they go

colinoscapee wrote:

The OP was talking about investing, not renting. Rents have come down a bit, as they were overpriced.

"So a good time for many to invest possibly, maybe get  a business started."
Oh, I see it pays to actually read before you open your big mouth,,, noted for next time 

Andybris2020 wrote:

colinoscapee wrote:

The OP was talking about investing, not renting. Rents have come down a bit, as they were overpriced.

"So a good time for many to invest possibly, maybe get  a business started."
Oh, I see it pays to actually read before you open your big mouth,,, noted for next time 

Hahaha Andy, we've all done that before.😀

OceanBeach92107 wrote:

Hotel rates are being significantly discounted in HCMC, D1.

The Booking dot com rates are about 30% to 50% lower than normal, and I was able to negotiate a further 25% discount through direct email with one of my regular spots.

The thread is about purchasing property, not hotel rates. With the massive decline in tourist numbers, a drop in room rates was enivitable.

colinoscapee wrote:

OceanBeach92107 wrote:

Hotel rates are being significantly discounted in HCMC, D1.

The Booking dot com rates are about 30% to 50% lower than normal, and I was able to negotiate a further 25% discount through direct email with one of my regular spots.

The thread is about purchasing property, not hotel rates. With the massive decline in tourist numbers, a drop in room rates was enivitable.

When considering whether to purchase, an important point to consider is prevailing rental rates, as some people will choose to purchase and then rent out the property.

Many expatriates choose to live in hotels instead of classic apartments, and the lower rates charged will continue to make that a feasible option for some.

This is probably contributing to downward pressure on rental return rates for apartments, and is a valid point to consider in this thread.

OceanBeach92107 wrote:

colinoscapee wrote:

OceanBeach92107 wrote:

Hotel rates are being significantly discounted in HCMC, D1.

The Booking dot com rates are about 30% to 50% lower than normal, and I was able to negotiate a further 25% discount through direct email with one of my regular spots.

The thread is about purchasing property, not hotel rates. With the massive decline in tourist numbers, a drop in room rates was enivitable.

When considering whether to purchase, an important point to consider is prevailing rental rates, as some people will choose to purchase and then rent out the property.

Many expatriates choose to live in hotels instead of classic apartments, and the lower rates charged will continue to make that a feasible option for some.

This is probably contributing to downward pressure on rental return rates for apartments, and is a valid point to consider in this thread.

Out of curiosity how much was full rate and what did you manage to negotiate?

Andybris2020 wrote:

OceanBeach92107 wrote:

colinoscapee wrote:

The thread is about purchasing property, not hotel rates. With the massive decline in tourist numbers, a drop in room rates was enivitable.

When considering whether to purchase, an important point to consider is prevailing rental rates, as some people will choose to purchase and then rent out the property.

Many expatriates choose to live in hotels instead of classic apartments, and the lower rates charged will continue to make that a feasible option for some.

This is probably contributing to downward pressure on rental return rates for apartments, and is a valid point to consider in this thread.

Out of curiosity how much was full rate and what did you manage to negotiate?

Normal weekend rate at that hotel had previously been about ₫1,200,000 VNĐ on Booking dot com (which always includes tax and fees in prices).

I negotiated a total price for 2 nights at ₫1,100,000 VNĐ

Witty1 wrote:

I can see prices dropping massively over the next two months.
In the last 3 weeks I have seen a huge amount of shops,houses and obviously the apartments are going up everywhere already many sit empty due to over supply.
Of course they are still asking top money as reality hasn't bitten yet in many cases.
I can see a lot less Chinese coming after this for more than one reason.
Less westerners for the next yr, many put off by the prospect of another outbreak and lack of funds due to this one.
So a good time for many to invest possibly, maybe get  a business started.

Thoughts?

I'm not expert but I'd say no, it's not a good time unless you are looking at 10 years++ ROI (maybe) or if you are just looking for a place to live because the situation you describe won't change any time soon. My guess is that any real estate will depreciate in value as it sits empty and/or another empty building goes up right next door. Where's the demand for these places?

As for a business, it seems the same: oversupply and lack of demand unless you have a very innovative service/product (solar-powered motorbikes?) or a niche market such as doomsday bunkers perhaps.

Anyway, if you've got some excess money, the best thing may be to party like it's 1999 and spend it on whatever you enjoy the most in the present moment.   

johnross23 wrote:

Witty1 wrote:

I can see prices dropping massively over the next two months.
In the last 3 weeks I have seen a huge amount of shops,houses and obviously the apartments are going up everywhere already many sit empty due to over supply.
Of course they are still asking top money as reality hasn't bitten yet in many cases.
I can see a lot less Chinese coming after this for more than one reason.
Less westerners for the next yr, many put off by the prospect of another outbreak and lack of funds due to this one.
So a good time for many to invest possibly, maybe get  a business started.

Thoughts?

I'm not expert but I'd say no, it's not a good time unless you are looking at 10 years++ ROI (maybe) or if you are just looking for a place to live because the situation you describe won't change any time soon. My guess is that any real estate will depreciate in value as it sits empty and/or another empty building goes up right next door. Where's the demand for these places?

As for a business, it seems the same: oversupply and lack of demand unless you have a very innovative service/product (solar-powered motorbikes?) or a niche market such as doomsday bunkers perhaps.

Anyway, if you've got some excess money, the best thing may be to party like it's 1999 and spend it on whatever you enjoy the most in the present moment.   

"party like it's 1999"  - been there done that - wasnt Y2K a laugh 

Andybris2020 wrote:

johnross23 wrote:

Witty1 wrote:

I can see prices dropping massively over the next two months.
In the last 3 weeks I have seen a huge amount of shops,houses and obviously the apartments are going up everywhere already many sit empty due to over supply.
Of course they are still asking top money as reality hasn't bitten yet in many cases.
I can see a lot less Chinese coming after this for more than one reason.
Less westerners for the next yr, many put off by the prospect of another outbreak and lack of funds due to this one.
So a good time for many to invest possibly, maybe get  a business started.

Thoughts?

I'm not expert but I'd say no, it's not a good time unless you are looking at 10 years++ ROI (maybe) or if you are just looking for a place to live because the situation you describe won't change any time soon. My guess is that any real estate will depreciate in value as it sits empty and/or another empty building goes up right next door. Where's the demand for these places?

As for a business, it seems the same: oversupply and lack of demand unless you have a very innovative service/product (solar-powered motorbikes?) or a niche market such as doomsday bunkers perhaps.

Anyway, if you've got some excess money, the best thing may be to party like it's 1999 and spend it on whatever you enjoy the most in the present moment.   

"party like it's 1999"  - been there done that - wasnt Y2K a laugh 

I wonder how many sheep got sucked into buying Y2K software.

colinoscapee wrote:

Andybris2020 wrote:

johnross23 wrote:

I'm not expert but I'd say no, it's not a good time unless you are looking at 10 years++ ROI (maybe) or if you are just looking for a place to live because the situation you describe won't change any time soon. My guess is that any real estate will depreciate in value as it sits empty and/or another empty building goes up right next door. Where's the demand for these places?

As for a business, it seems the same: oversupply and lack of demand unless you have a very innovative service/product (solar-powered motorbikes?) or a niche market such as doomsday bunkers perhaps.

Anyway, if you've got some excess money, the best thing may be to party like it's 1999 and spend it on whatever you enjoy the most in the present moment.   

"party like it's 1999"  - been there done that - wasnt Y2K a laugh 

I wonder how many sheep got sucked into buying Y2K software.

truck loads, millions wasted on trying to fix a non problem

MarkinNam wrote:

Wear a mask, wash your hands, keep your distance from others and don't go out if you don't have to. Just out of interest, has the corona made the locals  more aware of others ??

For me, it just looks like prior Corona. Just less busy

departed99 wrote:

Vietnamese would rather see their property stand empty for six months than lose 'face' to a foreigner and reduce the rent by even a small amount, in my humble experience..

Per Andybris2020's post above he already found three landlords willing to do it.  Substantial reductions to boot.

departed99 wrote:

Vietnamese would rather see their property stand empty for six months than lose 'face' to a foreigner and reduce the rent by even a small amount, in my humble experience..

Yoda0807 wrote:

There are more nice people in Vietnam than you think.

departed99 wrote:

Vietnamese would rather see their property stand empty for six months than lose 'face' to a foreigner and reduce the rent by even a small amount, in my humble experience..

I know that my landlords are not one of them.