Developers offer attractive incentives to boost year-end demand

By Diep Anh   November 7, 2022 | 05:00 am PT
Several attractive incentives will create opportunities for investors with available cash to purchase real estate products in the last quarter of this year.

The last quarter is a golden time of the year for developers to launch new subdivisions with preferential payment policies to boost demand.

Currently, attractive preferential policies are being introduced by a lot of developers in Vietnam, luring investors with their financial reserves.

Investors visit Aqua City project during the event last weekend. Photo by Novaland

Investors visit the Aqua City project in October 2022. Photo by Aqua City

Customers have typically received a total discount of up to 35% at the Hanoi Melody Residences project in Linh Dam (Hanoi) when payment surpasses the schedule of 95% of the apartment value.

The investor of the Bcons Plaza townhouse project in Di An (Binh Duong) has also committed to purchasing the customer's land plot for a profit of 40% three years after the contract is signed, which equates to a profit of 13.3% annually. This is rated by investors as one of the best high-profit commitments on the market.

The developer also provides alluring preferential policies with Aqua City project, the smart eco-city in the east of Ho Chi Minh City, like providing a furniture package of VND1.5 billion, committing to rent back goods at a profit of 18% in the first three years after receiving the house, or committing to buy back 6–10% annually.

Additionally, there are discounts of up to 20% for using a quick payment.

Investors join the event of Novaland last weekend. Photo by Novaland

Investors join an event at Novaland Gallery. Photo by NovaWorld Phan Thiet

Many investors predict that attractive preferential policies and profit sharing would be popular in Vietnam's real estate market in late 2022 and early 2023.

According to experts, several investment channels, including stocks and cryptocurrencies, are declining, which is impacting investor sentiment. Meanwhile, real estate remains a long-term and sustainable investment channel for Vietnamese people.

In addition, attractive incentive programs will last for a limited time as developers need to boost demand and increase liquidity.

Therefore, investors with financial potential can take advantage of opportunities and profit from incentives.

The villas have been completed at Novalands project. Photo: Novaland

Real estate items have been completed at NovaWorld Phan Thiet. Photo by NovaWorld Phan Thiet

Nguyen Thanh, 50, an investor in Hanoi said he has been checking shophouse products to invest profitably and accumulate assets in the context of real estate developers offering many attractive incentives.

"With 20 years of experience, I typically invest in real estate items when the market is slow. After a few years when the market recovers and grows, I will profit," Thanh said.

Cash is king for investors to buy real estate and accumulate their fortunes, according to 45-year-old Luu Van Thang, an investor with many years of experience.

"The main purpose of the incentive is to guarantee cash flow; once it is stable, the price will climb fast. I consider this a chance for investors with sound finances."

The chain of utilities has been completed in NovaWorld Phan Thiet. Photo by Novaland

A chain of utilities has been completed at NovaWorld Phan Thiet. Photo by NovaWorld Phan Thiet

Nguyen Van Dinh, chairman of the Vietnam Association of Realtors, said that developers who are launching new projects at this time will not set excessive pricing that will make it difficult for sales.

Capital access is the main challenge facing the real estate market today because most investors find it challenging to obtain bank loans. Thus, developers have to manage and find ways to directly raise money from customers.

"Increasing incentives at the same level as the cost of borrowing from banks to reduce house prices for customers is one of the solutions that businesses have devised to rescue themselves in the market," said Dinh.

Additionally, the expert advises investors to choose established and well-planned real estate at a location with good infrastructure.

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