Property Promotion Race

Most recently, investors of Golden Land Project on Nguyen Trai street, Hanoi released an amazing program called "Bank support - Golden Land to offer a 100 percent interest rate." Accordingly, customers who buy apartments from the project by Golden Land owner by Hung Viet Corporation will be provided loans of up to 70 percent of the apartment price and the investor is supporting 100 percent of interest, with the maximum loan period of 15 years. For example, Golden Palace project (Me Tri, Tu Liem) is also supported by investors to borrow 85 percent of the apartment price within 15 years with interest rate of 16 percent/ year.

Not only that, many investors accept risk by letting customers get their house after paying a very small initial amount of money to fill up project which cannot be sold. Becamex TDC recently, investor of Uni Town Project- Binh Duong city has come to Hanoi to organize a program to introduce the project. According to TDC Becamex investors, customers only need to pay from 4-10 percent of contract value to get their house in 2012. The remaining amount is divided into 29 small periods, paying within 54 months.

Real Estate Land Corporation North Green Land also launched promotion in order to attract customers by granting a Vespa motorbike for customers who subscribe home from 1 - 24 June. Golden Land Real Estate Company will grant  one tenth a tael of gold or roundtrip plane ticket to the customer when purchasing land which has not had land certificate with VND158 million /110m2.

Time for investors to claim prestigeStephen Wyatt, Executive Director of Knight Frank company said that with various promotions, real estate market brought many opportunities for buyers, as they have many choices not to own a house with reasonable prices, nice interior design, and available facilities. Conversely, investors faced with increasing challenges to provide products with good quality and service and high competitiveness.

These pressures can lead to the "no transparency" of the promotion. Ms Nguyen Viet Ha, Division of Research and Consulting, CBRE Ltd Vietnam, said that with real estate companies, the form of financial assistance such as discounts and promotions are widely used to improve house sales. This has quickly become a fierce competition on prices between investors and attracted public attention. But what is behind the scenes is the construction progress of the project. Many investors, especially investors with long-term vision, not in a hurry to join the fierce price competition, quietly keep good construction progress while waiting for market reversals, and considering the best solution. Their response may be slow, but often deliberate.

According to many property experts, evaluating the investor's liability must be based on many factors besides requirements on schedule and high quality equipment. Besides, investors always must be active in all situations, not abandon their commitments to customers for the products which have to be high quality and win customer appreciation.

For customers, price is always a top concern when they decide to invest. But this is not the determining factor of all, because according to Ms Ha, price can be deceiving, because the price is determined by the equipment, if equipment is not clear, the cheapest brand will become expensive. Never too much to say that the purchase of the unfinished apartment is like investing in the future. If the product is handed over with lower quality than expected, the buyer is paying the hefty price for that product.