Promotions galore as housing developers seek to revive demand

By Nguyen Tieu   November 10, 2023 | 12:01 am PT
Promotions galore as housing developers seek to revive demand
Apartment blocks in Binh Chanh District, Ho Chi Minh City, in October 2023. Photo by Quynh Tran
It is raining discounts and freebies in the HCMC housing market as developers try to lure buyers.

Khang Dien is selling apartments in The Privia in Binh Tan District, Ho Chi Minh City at VND48-50 million (US$2,000-2,083) per square meter, down from the VND60 million it had planned earlier.

Buyers making early payments get a discount of 10% and gold bullion as a gift.

Nam Long Group is launching three projects at the same time, Akari City in Binh Tan District and Mizuki Park in Binh Chanh District, and Ehome South gate in Ben Luc District in HCMC’s neighboring province of Long An.

The average price at Akari City has been cut to VND45 million per square meter from VND48 million.

The developer is offering a 5 percentage point subsidy for 24 months on buyers’ bank mortgage.

For its housing project in the city’s Thu Duc City, Vingroup will apply an interest rate of 0% for two years, 8% for the next three years and 5% for the next 25 months.

For a project on Phu Quoc Island, Vinhomes is offering a discount of 15% to people buying in November.

Similar demand stimulus programs are also being offered by developers in HCMC’s neighboring provinces such as Dong Nai and Binh Duong.

Trinh Thi Kim Lien, sales director at real estate brokerage Dat Xanh Services, said liquidity is still low and so developers perforce have to rely on demand stimulus programs.

Banks offer low interest rates on mortgages only for the first six to 12 months, and so developers have to subsidize them for customers for at least the first two to three years, she said.

According to Le Hoang Chau, president of the HCMC Real Estate Association, the slump in the market has forced developers to reduce prices and accept lower profit margins.

They no longer expect super profits like before and are happy with 8-10%, he said, adding their main goal now is safe and sustainable development.

Nguyen Van Dinh, president of the Vietnam Association of Realtors, expected the real estate market to continue recovering in the fourth quarter thanks to higher confidence among investors and lower bank interest rates.

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