Real estate firms’ officers dare not dream of Tet bonus
The real estate market has been frozen since mid 2011. Real estate developers cannot sell their products, while they have to pay high at 24 percent per annum for bank loans’ interest rates. A lot of real estate firms have been put on the verge of bankruptcy.
Director of a company which is developing a project in Van Can commune of Hoai Duc district in Hanoi, said that he has to mortgage two houses worth 2 million dollars at Ciputra to borrow money from a bank to implement the project.
Especially, the director even had to sell a luxury car to get 7 billion dong which has also been poured into the project. “Now I have nothing more to sell or mortgage, and I do not know how I can arrange money to continue the project,” he complained.
To date, the project developer can only sell 40 percent of the total apartments. It’s now the time for buyers to make payment in the second stage. However, they have refused to pay. “I am afraid I would go bankrupted because I cannot arrange money to pay bank loans interest rates,” he said
When asked about Tet bonus, the director shook his hands. “I will not have Tet bonus for the staff this year,” he said, adding that he is still owing two-month salaries, and he is just striving to seek the loans to pay the salaries.
Meanwhile, the employees of the company whispered in each others’ ears that they are seeking new jobs after Tet holiday. “I am working the last days for the company. I understand that the company will not be able to offer Tet bonus for the staff,” one of them said.
Nguyen Xuan Phong, Deputy General Director of Coma 18, said that the company is borrowing 100 billion dong from banks at the interest rate of 20 percent. Meanwhile, only a half of the apartments at Westa project in Ha Dong district have been sold.
“Last year we could offer the Tet bonuses of between 10 million dong and 40 million dong. But I am sure this year’s bonus would be lower,” Phong said.
Nguyen Van Duc, Director of Dat Lanh Real Estate Company, said that Southern people expect Tet bonuses more than northern people. Workers in the south come from different provinces, and they also expect to have good bonuses, which they would bring to the home village to celebrate Tet together with the families.
Duc said that he plans to give the 13th month salary to the staff, which is just equal to that of the last year. Meanwhile, excellent officers would not get extra bonuses.
“I know many real estate firms in the south which implement projects mostly with bank loans. Therefore, they have suffered because of the overly high interest rates and unsalability of apartments,” Duc said. “They even cannot pay salaries to the staff, let alone Tet bonuses.”
Paying dividends in apartments and landed property
Coma 18’s Chair Le Huy Lan said that earlier this year, the board of management planned to pay the dividend of 10 percent. However, this proves to be impossible because of the bad business.
Especially, CIC 18 has shocked its staff when offering a new method of paying dividends. Shareholders would receive apartments or landed property at the projects developed by the company. In case shareholders refuse the real estate products, the company would pay dividends within 12 months, from January to December 2012, bearing the interest rate of 2 percent per month.
Source: Tien phong
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