Acquiring house or apartment following prices dropping?

Especially on this site a lot of people have returned to their home countries either made it home or got stuck in transit. I think you are right people are scared of another outbreak, so they will rather stay in their home country and wait to see what happens next.

The prevailing medical wisdom is that it will strike again in the autumn with a vengeance. I believe this is based on the history of pandemics.

Wear a mask, wash your hands, keep your distance from others and don't go out if you don't have to.

This is a long way from over. At least there is no medical evidence that suggests that this is a one off and everything goes back to normal.

Governments are just trying to keep the infection rate below what their medical system can handle. Each infection can use up resources in a hospital for at least a month.

Ending or easing restrictions is a reflection of that infection rate not an indicator that the virus is behind us. This is an important distinction.

One that my neighbours with their daily karaoke drinking parties clearly don't grasp.

China has a new outbreak.

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 ??

Getting back on track, I spoke with a real estate broker in Danang.
She says many are low balling with cash. No one is biting. The people that have bought the higher end units etc she deals in are not skint, and are certainly not giving things away.
Rental property's are different, so many on offer, and good deals coming on line now. Just wait, prices will be dropping on rentals with the lack of people in Vietnam. Balls in our court now in regards to rentals.

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

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

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

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.😀

Thanks,
A perfectly valid and useful reply
Renting is still an area of interest to most of us I would assume, either we will rent or have something to rent.
I have seen a big drop in shop rents but as you say they are trying to get you in then up it.
So anyone looking to rent make sure you are really clear on the terms and conditions.
Walk away if not good as they is over supply now

It's going to be interesting to see what happens with real estate prices. In Bangkok there was an oversupply of condominiums for years, yet they kept building new ones and the prices didn't change a lot, if it's true what some expats there told me. Maybe the same could happen in Saigon?

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.

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.   

My experience in Asia is the best you can hope for is a price freeze, not a drop. It's not like the American market where prices can go up and down. The only possible exception may be way out in the sticks where a commute to the city is not really practical. That doesn't mean times can't change, but after nearly 20 years here, I tend to doubt it.

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

So far I am not seeing any drop in prices.
They seem to believe they can let or sell as before Covid and reality hasn't hit yet!

I have seen rooms to rent not even cleaned  studio apartments with nothing cleaned and no furniture for 10Mil for a month
Rooms filthy with broken furniture terrible paint for 6Mil ml
Buying no drop as far as I can see but things will have to change.
If America and UK see a second wave of Covid it will set back the possibility of air travel longer and that will hurt.

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

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..

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.

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..