Slash condo prices for market’s sake: HAGL chairman
04-09-2012
 The condo project Hoang Anh Riverview in Thao Dien Ward, HCMC’s District 2 is one of the projects offering discounts at present - Photo: Dinh Dung |
“The property market now is markedly different from four years ago when prices were sharply chased up,” said HAGL chairman Doan Nguyen Duc. He added property prices have been brought back to actual values now, resulting in a highly competitive market.
The market is in a state of shock at the double discount at the high-end condo project Hoang Anh Riverview of HAGL in HCMC’s District 2. Secondary investors Dai Tin A Chau and An Binh Land have decided to slash the price of 120 flats from VND28 million to VND18.2 million per square meter, down some 35% against 2009’s price.
As such, after two huge discounts, the Hoang Anh Riverview condo price has fallen an astonishing 60% from the initial offering price.
However in actual fact, the VND18.2 million price tag exclusive of VAT, is only available to buyers making one-time payments equal to 95% of the home’s value, said the project distributor.
Apart from the HAGL price-cut, Arch Real Estate Service Joint Stock Company has also offered 10-20% discounts for the Carina Plaza project in the city’s District 8. Apartment prices have been cut from VND15.5 million to VND13.2 million per square meter.
Moreover, other investors have launched promotions as a form of price discount to attract homebuyers.
For example, Sacomreal gives customers 4-20% discounts through the ‘Golden Week, Select Place of Settlement’ deal. Meanwhile, Khang Linh Real Estate Co. rolls out the ‘Rain of Gifts’, providing discounts of up to 40% to homebuyers in Vung Tau City.
According to Duc, the property market in recent years has been shell-shocked by the discount trend, but this trend is favorable to the market in the long term.
“The property market is approaching stability, and long-term property traders should support the discount trend,” Duc stated.
HAGL is about to launch some apartment projects, including Phu Hoang Anh second phase, Thanh Binh and some others in District 9, Duc informed. However, the company is considering the absorptive capacity of the market as many secondary investors are offering lower prices than the project owners in order to pull out of the market early.
Many realty firms consider HAGL a ‘killjoy’ as the company has constantly cut prices, making buyers hesitate over purchases thinking prices will be lowered further.
However, the bold moves of HAGL have put pressure on other property developers to reconsider their price policies and selling methods, which is beneficial to homebuyers.
Regarding the recent announcement to lower prices by 50% against other projects in District 7, Duc said many people had incorrectly interpreted that HAGL would further slash apartment prices. In fact, the company intends to develop low-cost houses, with prices equal to half of those offered by other projects in the area, not to cut prices of its products currently on sale by 50%.
