Many Real Estate Products Launched Ahead of Rate Cuts

Supporting information has had a positive psychological impact on real estate investors. Some developers said they are ready to introduce their products ahead of rate cut-driven demand.

In the next 10 days, at least more than 10 projects, both new and old, will organise big road-shows to resume sales, after the central bank decided to unwind credit restrictions on property business. Thu Duc Housing Development Corporation (Thuduchouse) launched four relatively large projects, namely Phuoc Long Spring Town (District 9, Ho Chi Minh City), Long Hoi City (Long An province), TDH - Truong Tho (Thu Duc, Ho Chi Minh City) and TDH-Phuoc Binh (District 9, Ho Chi Minh City). The Hochiminh Stock Exchange (HOSE)-listed company (symbol: TDH) said it will host “Thuduchouse Festival - Sharing the Home,” aiming to introduce the four projects and their promotion programmes to customers. For instance, customers only need to pay half the value up front for houses in TDH Thuc Duc and TDH Phuoc Binh to enjoy a 5 percent discount. Meanwhile, the company will offer 13 percent discount on land plot value for customers purchasing houses in the Long Hoi City project. Many other major developers will also soon offer their projects.

 

A market survey company said developers are forecast to offer 4,000 apartments in the near term. The director of a big property company which owns an unsellable upmarket apartment project said, “After a long time of investors losing confidence in the property market, we cannot expect a strong sales result from this resumption but it, at least, revitalises many projects at the back of plentiful supporting information from capital markets. I think the worst time for the real estate market is going to be over. Investors will return to the market, but it will take time to restore their confidence.”

 

Mr Phan Duc Tri, General Director of Dai Tin Real Estate Company, said: “The freezing of the property market in the past time is partly caused by customer sentiment. The market is full of negative information and customers are uncertain of market trends. Thus, many investors with handy money do not dare to spend on property assets, while investors having already bought try to sell out. The lifting of property lending restrictions and the lowering of the deposit rate ceiling to 12 percent per annum have a good impact on investor confidence, although neither property companies nor customers have benefited yet from those policies.”

 

He added: “Duc Tri Real Estate Company is selling the last 21 land plots in My Phuoc 2 project (VND1.8 - 2.5 million per square metre). It recently introduced the project to customers but they were still afraid and indecisive. On April 14, the company introduced more customers, and 16 out of 21 plots were registered for purchase.”