Property Market Needs Joint Efforts of Banks and Investors

Quang An and Hoang Cau upmarket apartment projects, invested by Tan Hoang Minh Group, have launched many attractive promotion programmes, including a special prize with a Mercedes-Benz sedan worth VND3 billion. Besides, each apartment buyer will be presented an iPhone 6s with a 16-GB storage capacity and 2- 3 percent discount on total apartment value. A bigger discount is also applied to prematurely paid customers.

 

Given ample apartment supplies, developers need to have appealing promotion programmes to boost sales. Promotional items are mainly cash, free services in many years, and interior furniture.

 

Recently, many banks and property developers have joined hands to apply big sales promotion programmes, including lending rate supports for homebuyers.

 

Many projects are offering relatively attractive interest rates for homebuyers such as zero interest for first 12 months, 5.5 percent interest rate in the first six months, 1 percent instalment in 79 months, or 30 percent requirement payment for home ownership. These programmes are quite effective as they draw buyers’ interests and boost liquidity.

 

Vingroup, a top property developer in Vietnam, has also cooperated with Techcombank to offer loans in many forms for buyers of apartments at Times City Park Hill, a high-class condominium complex.

 

If homebuyers prematurely pay 95 percent of apartment value, they will be discounted 9.5 percent per year on prematurely paid value on the number of days of premature payment. If they need loans, the investor will assist them to borrow up to 75 percent of the apartment value, with zero interest for 45 percent of the value in 10 months and for 25 percent of the value in 20 months. Besides that, they will be granted a grace period of 24 months dating from the date of disbursement.

Home loans are popular, particularly in upmarket projects invested by prestigious investors like The Garden Hill (My Dinh - Nam Tu Liem District), D’.Le Roi Soleil (Quang An, Tay Ho District), and D’.Le Pont D’or (Hoang Cau, Dong Da District).

 

Remarkably, homebuyers of Hanoi Lanmark 51 Project in Van Phuc, Ha Dong District will be offered loans with a first-year fixed interest rate of 5.99 percent per annum and they can borrow up to 85 percent of the home value with a maturity of 20 years from PVcomBank. As a guarantee bank for this project, PVcomBank will manage the money buyers pay to the investor and pledge to pay all benefits of customers as per contacts with the investor in case the investor fails to hand over apartments as scheduled.

 

With abundant supplies, homebuyers are receiving better care as they have more choices than ever.

 

Pham Thanh Hung, Vice Chairman of CenGroup, said the active participation of banks that helps improve the market liquidity is regaining the public confidence because only banks are the best to know the health of real estate businesses. Therefore, buyers only need to look at banks’ movements to envisage the completion of projects.

 

A banking expert said current interest rates on home loans are attractive but buyers should select good projects and reputable investors.

 

Dr Nguyen Tri Hieu said that if investors accept a requirement payment of 20 percent and the remainder of 80 percent from bank loans, or they simply need credit contracts, buyers necessarily look into home purchase contracts and credit contrast for the property.

 

Besides, he noted that sales promotions are now good incentives customers but if inflation returns, interest rates will be raised and risks of home loans will be borne to buyers.