Property Market Targeting Low-Income People

Speaking at the press conference introducing this programme, Mr Nguyen Huu Cuong, Chairman of Hanoi Real Estate Club said following the success of the first fair, the upcoming event will bring investors an opportunity to promote their images to consumers and customers through mass media. This is also a rare opportunity for project owners to attract potential investors, boosting sales. More importantly, this is a measure to help accelerate the sales process and mobilising capital in the context of ailing economy having serious impact on the real estate market.

 

According to the organisers, currently there are about 2,000 potential customers in demand for housing having registered to be involved in the fair. The project owners have also announced to bring teams of enthusiastic, professional and skilful consultants, capable of receiving around 1,000 – 1,500 registrations/day, to provide customers support needed. Additionally, customers would also get support from banks in loan procedure advisory and disbursement of assistance package of VND30 trillion.

 

According to many real estate experts, Vietnam’s real estate has not yet passed the most difficult time. The successful trade is relatively scarce, most of it is just a reference to look for better opportunities. However, the second property fair is designed for customers of low income, the one with real demand, not speculators trying to hoard properties. Statistics of the Ministry of Construction showed that there are about 30,000 civil servants having applied for social housing while the supply is limited.

 

It’s widely concerned that whether the upcoming fair and its activities of advertising, offering social housing would be conducted in a transparent manner and introduce a reasonable price. Reply to this worry, Mr Nguyen Quoc Khanh, Chairman of G5 Realty Trading Floor and a member of the organising committee said in order to ensure consumers’ rights, fair organisers have established a group to carefully examine products to be brought to the fair. This would make sure that only real product with eligible legal binding can be introduced for purchase. On the other hand, the organising committee has also required written commitments from investors to have full responsibility for the legality of trading products.

Mr Nguyen Ngoc Thanh, Vice President of Vietnam National Real Estate Association,added that beside the VND30 trillion support package of the government, customers coming to the fair would also be introduced to separate credit packages of commercial banks to support individual investors and house buyers. Some could be named including Vietnam Construction Commercial Joint Stock Bank, Military Commercial Joint Stock Bank (MBBank), Vietnam Prosperity Commercial Joint Stock Bank (VPBank), Vietnam Export Import Bank (Eximbank). Mr Thanh also said that the real estate market would soon warm up in the coming years, but to get this market completely out of the crisis, the State Bank and the Ministry of Construction should propose to the government solutions loosening some regulations in the procedures of identification, mortgaged properties, etc to accelerate the financial aid package.

 

Mr Thanh also add that to best meet market demand, many commercial houses are now on sale with a 30-40 percent reduction compared to the original price, some projects are even offered at a nearly rock-bottom price of VND13 million/m2. Social houses are from just VND310 million for an apartment. This is indeed a very encouraging signal for the civil servants and those in real needs of their own houses, they now would not have to put up with speculator hoarding houses and pushing up price point like in the "house fever" before.

 

The goal of the organisers to create this fair is not only for profit, but first and foremost to establish a healthy playground with transparency for buyers and sellers, regaining consumers’ trust and creating good culture in the real estate market at the end of the year.