Hunting Cheap and Complete Apartment Projects

The major trend of the real estate market in 2012 is the sales, discount, promotion of various projects launched in the market. As usual, the end of the year is the time when projects are launched with common forms of promotion such as discounts, free furniture, interest rate support, etc.

 

Hanoi market has recently seen a lot of sale information of several apartment projects. For example, at the end of November, Ha Do opened apartment sell number 3 of Park View apartment for VND22.7 million per square metre (with complete interior but excluding VAT). Compared to the price of VND26.3 million per square metre during the previous sale on October 19, the price of this project has fallen nearly 14 percent.

 

Real estate exchange floor Coma 18 has to offer that with the price of VND20.2 million per square metre, customer will receive an 8-percent discount when buying apartments and be supported by BIDV for loans with preferential interest rates. 400 Phuc Thinh apartments in Tan Tay Do urban town of Hoai Duc, Hanoi has just been sold for VND720 million with the area of more than 53 square metres with support interest rate of 3 percent in 12 months. Some real estate exchange floors offer customer discount of 9 percent.

 

For low-income housing segment, Hanoi Construction Joint Stock Company 3 shared that from1st December, the company continues to receive registration of low-income housing phase 4 in Sai Dong urban town (Long Bien district, Hanoi) with prices ranging from VND 10.6 million to VND 13 million per square metre (including VAT).

 

In Ho Chi Minh City, on 9^th November, the Housing Development Corporation of Ba Ria - Vung Tau (HODECO) offered phase 1 sale of the Doi Ngoc Tuoc II project for VND 14.3 million per square metre.

 

Although not announcing prices, investors made ​​more flexible payment methods that allow customers to get the background as soon as the payment of 39 million is accomplished and the remaining amount paid within 36 months.

 

In the resort real estate market, Vietnam Au offered the five-year deferred payment for buyers of Viet Au project in Hoa Binh for VND1.9 million per square metre. Dai Lai Hong Hac Corporation has just launched ten villas of Flamingo Dai Lai Resort project. Buyers will receive a 30-percent discount during the opening sale.

 

According to Mr Truong Chi Kien, Deputy Director of Him Lam Thu Do, the general discount on the apartment market in 2012 is about 20 percent, some projects with bid discount, some with smaller. In 2013, it is expected that the market will have better liquidity discount yet maintaining the trend of huge promotion.

 

Real estate market is more towards customers from the beginning of 2012, since investors have to make project in accordance with the real demand of customers.

Only offering discounts, gifts and promotions is difficult to convince people to buy apartments. Rather, quality and progress of the project is crucial to create value and competitiveness for each project.

 

In fact, some of the projects have also shown this trend. For example, after three years of commencement, villas and garden houses of Hapulico Complex project have been put into use. Seven tower apartments of 17-24 floors, 800 apartments and one 24-storey office tower have recently completed and overhanded in November 2012, two months earlier than planned.

 

The price of this apartment project on the market remained at about VND 33 million per square metre, still higher than the original price of VND 5-6 million per square metre. Meanwhile, many projects have decreased by 15-20 percent compared to the original price investors offered.

 

Sails Tower project located in Kien Hung ward, Ha Dong, Hanoi launched by Khai Hung Company consisting of two towers of 30 and 27 floors with 51 apartments, a basement and 3 service floor along with many other living facilities.

 

This project is being completed, expected to overhand in September 2013. Project market at 137 Nguyen Ngoc Vu is exclusively distributed. Selling price is VND 16 million per square metre, equivalent to about VND 800 million an apartment. The bank supports 70 percent of the contract value within 15 years with the interest rate of 9.9 percent in the first 12 months. Besides, customers will receive a Honda Vision car worth about VND 30 million when buying apartment with the area of ​​70 square metre. In addition, investors have more incentives for customers who are civil servants, people with college degree or higher.

 

Therefore, the project is attracting a lot of successful transactions in recent time, especially in the area of Ha Dong District, Hoang Mai district, Thanh Xuan district, where are easier for customers to access the project. According to information from the distribution agency, currently there are over 300 successful transactions of this project after the opening sale from November 2012.

 

Mr. Nguyen Duc Cu – Director of Khai Hung Co. Ltd. said, the company will ensure the progress of Sails Tower, and pledge to use 4 lifts from Germany for the project. Additionally,100 percent of the power lines in the building do not use joint to ensure absolute safety for residents. Security camera system was installed along the corridor to provide peace of mind for residents living in the building.

 

According to Mr Kien, for projects with ideal location, companies having financial resources are really be able to compete with the market. Otherwise businesses which do not have core competency is difficult to survive, since the market competition is fierce. Therefore, the property market in 2013 will focus on value and quality of the product.