HCMC – Local property developers have been struggling to find ways to step up
sluggish home sales but their efforts can hardly pay off if they fail to prove
their ability to deliver as planned.
Cash gifts for customers
Vo Thuy Anh, deputy general
director of Novaland Company, a subsidiary of Nova Group, said her business has
launched a program called “From dream to reality” in celebration of the group’s
twentieth anniversary to lure buyers in the Sunrise City apartment project. The
developer promises to give away US$1,000, or over VND20 million, each month to
each buyer of a two- bedroom condo at the project located on Nguyen Huu Tho
Street in HCMC’s District 7.
With the one-year promotion,
homebuyers will be able to take back US$12,000 (over VND240 million) from the
project owner.
Novaland is also joining hands
with VietinBank to offer a financial support package with a fixed lending rate
over a period of five years. As such, homebuyers will enjoy a fixed interest
rate of a mere 8% per annum for the first year and 10% for the following four
years.
The response of homebuyers toward
the scheme is positive, with 30 condos already sold, Anh said.
With a total investment of some
US$500 million, six of 12 towers of 31-35 floors with about 750 high-class
apartments are complete. The apartments cost VND4 billion to VND6 billion a
unit. About 80% of 550 finished flats have found buyers, Anh said.
In addition to developers’ direct
promotions, the local real estate market has seen secondary investors racing to
launch direct or indirect discounts in a bid to attract homebuyers.
Phat Hung Real Estate JSC as a
secondary investor of the La Casa project in District 7 has put up for sale the
project at discounts of 15-30% and has received positive responses from buyers.
For instance, the firm just held a one-day introduction for some 300 visitors,
with 20 of them placing deposits.
The promotion allows those making
a downpayment equivalent to 98% of the contract value to get a 30% discount, so
the eventual price is down to VND13.6-14.6 million per square meter. The project
owner plans to deliver the condos next year.
Similarly, Sacomreal-S One Member
Limited Company under the umbrella of Sacomreal JSC has launched a promotional
package including interior furnishing items and electronic appliances worth a
combined VND200 million for buyers of the Belleza project in District 7.
Ta Chi Cuong, deputy general
director of the firm, said about 20 guests come to his company a day on average
to take a look into the project. “This is a good signal given the current tough
market conditions,” he noted.
Only finished condos that count
Things are now different from the
past when customers were ready to spend huge amounts making downpayments for
apartments on paper. Developers of a majority of projects trying to boost sales
at the moment present their completed products or those nearing completion to
assure customers that they would deliver homes on schedule.
Anh of Novaland said the condo
market has slowed down as there is no rush for clients to buy in the current
situation characterized by an oversupply. But she noted those in need of
housing are still interested in owning an apartment, especially a completed
one, citing the Sunrise City scheme as an example.
Ngo Huu Truong, managing director
of Hopefluent – Compareal Vietnam, said now is the right time to buy homes as
prices have dipped to reasonable levels.
Truong, however, advised
customers to take prudence when it comes to mulling financial matters and the
ability of developers to get their projects done on time. He also asked buyers
to inspect a number of projects before having a final decision.
A recent survey of Jones Lang
LaSalle Vietnam indicates that there are about 85,000 flats on sale in HCMC, of
which some 46,000 are finished and the remainder are under construction. The
number of unsold apartments accounts for about 34 %.
The company also forecast an
additional 16,300 apartments will be launched onto the market this year,
meaning supply of the segment will further rise toward the year’s end.
Dinh Dung and Khang Minh - The
Saigon Times Daily
Business & Investment Opportunities
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