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Real estate transactions stuck because of gold price increases
The escalation of gold prices in the last few days has made people hesitate to go through with real estate deals, freezing the market.
Huong had decided to purchase a house on Nguyen Trai street in district 5 in HCM City for 800 taels of gold after three weeks of price negotiations. However, she has just decided to cancel the transaction, because the gold price increases have made the house1.6 billion dong more expensive.
The unsuccessful transaction was described by brokers on the ACB Real Estate Trading Floor as a “loss in the 89th minute of a football match”.
Since May 14, the gold price has increased by 1 million per tael.
An officer at ACB Real Estate Trading Floor said that many people have anticipated the gold price increases; however, the sharp fluctuations still have made houses worth 500 taels of gold and up more difficult to sell.
The ACB Real Estate Trading Floor Nguyen Dinh Chieu branch, where the percentage of houses on offer in gold is the highest in HCM City, has reported that the transactions of houses and land in gold has decreased by 15 percent since the end of May.
Since May 15, there have been only seven successful transactions in gold out of 29 reported successful transactions. The other transactions were all made in VND.
Meanwhile, previously, when the gold price was less than 20 million dong per tael, the percentage of successful transactions of individual houses was always higher than 35 percent.
Most of the successful transactions in gold in the last two weeks have had the value of below 100 taels, or less than 2 billion dong. The most successful deal carried out in gold was one worth 250 taels, or over 5 billion dong.
According to General Director of ACB Real Estate Company Pham Van Hai, previously, 40 percent of houses were offered for sale in gold, while the other 60 in VND. However, in the last two weeks, the percentage of houses quoted in gold has dropped to just 24%.
VietNamNet, VNE
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