Striving and waiting for market recovery
31-07-2012
 The Green Town project developed by Dong Nai Rubber Real Estate One Member LLC in Trang Bom Town, Dong Nai Province is on sale at VND3.9 million per square meter - Photo: Dinh Dung |
A half year of striving
Saw Kim Suan, general director of Setia Lai Thieu One Member Company Limited, said the first half of this year was the most difficult time since the Malaysia-invested firm joined the local realty market six years ago. The company saw its sales slowing down in line with the market trend due to the economic woes.
Although the central bank has loosened the monetary policy and lending rates are falling, the property trade volume in the market did not improve in the first six months. CB Richard Ellis Vietnam (CBRE) reports apartment prices continue the downtrend and buyers mainly eye the mid-end segment.
There are currently some 94,000 apartments on sale, and half of them have been completed. Medium-cost apartments make up 40% of the total supply.
Le Thanh Vinh, deputy general director of Sai Gon Thuong Tin Real Estate Joint Stock Company (Sacomreal), said unfavorable conditions had forced many investors to suspend their projects or offer discounts.
Though project owners are racing to launch increasingly attractive promotion programs, homebuyers feel no rush to make their decisions.
However, property prices could hardly drop any further because they have matched the actual values while the project costs, such as site clearance expense and lending rates, remain high.
At present, most project owners are applying flexible payment methods to lure customers. Buyers only need to make down payments equal to 30% of the apartment values and the remainder can be paid in installments in 2-3 years with no interest.
Market observers underscore lending rate cut is not a decisive factor in wooing those with no demand to purchase houses, but it only assists those actually in need of housing. This explains why the trade volume has not increased significantly over the past time.
Busy launching products
Given the reductions of deposit and lending rates, several project owners continue to offer their apartments and land plots with attractive sale promotions, including Sacomreal with its Arista Villas project. The project covering over nine hectares in HCMC’s Thu Duc District is designed with garden houses, villas, school, club and green park.
Meanwhile, Nam Long Investment Corporation will launch some 14,000 Ehome condos into the market in the next five years, aiming at young families. Specifically, the Ehome 3 Saigon West project in Binh Tan District will be put up for sale at VND615 million per unit.
The property developer is also carrying out the Nam Long-Saigon North Residence project in Thuan An District, Binh Duong Province. The project is designed with 4,000 Ehome condos and 218 terraced garden houses, covering 75-90 square meters each.
The first 20 garden houses are now on sale at VND867 million per unit.
Also in Binh Duong, Setia Lai Thieu is offering the project named EcoXuan with prices of VND2 billion per street house and VND4 billion a villa.
In Dong Nai, Kim Oanh Real Estate Joint Stock Company and Tin Khai Company, a subsidiary of Tin Nghia Group, have put up for sale the Lavender City project in Vinh Cuu District. The project consists of 544 townhouses and 71 villas priced from VND185 million per plot.
In addition, Phuc Khang Investment and Construction Corporation and Thang Long Real Estate Corporation have launched the joint project called Sunflower City in Dong Nai’s Nhon Trach District. Meanwhile, Dong Nai Rubber Real Estate One Member LLC is offering 80 commercial street houses and garden villas of the Green Town project in Trang Bom Town at VND3.9-6.8 million per square meter.
Vinh of Sacomreal expected the property market would witness better signs and investors would return to the market if banks slashed their lending rates further to stimulate cash flow.
According to a research of CBRE, it would take six more months for the realty market to regain the growth momentum.
