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Luxury housing market awaits thaw
The luxury apartment market that has had a long stint as a key segment for property investors in HCM City has all but frozen.
Before the freeze came, people had rushed to buy luxury apartments like Sai Gon Pearl, The Vista, Estella, Blooming Park, Phu Hoang Anh, Hoang Anh Riverview.
Now there is a glut of these condos for sale on the internet and property transaction floors, but there are no buyers.
Tran Van Hai, Head of Phu My Hung Vinaland property transaction office said his office hadn't had a luxury apartment sale for three months, despite prices at below cost.
Nguyen Minh Suong, Director of District 2's Dai Nam Property Co said a project in Nam Sai Gon Area with investment capital of VND5,000 billion (US$263 million) dropped its price to $1,700-2,000 per sq.m from $2,600-2,800 per sq.m but hasn't attracted much interest.
Suong said that while they couldn't slow the progress of the project, they were finding it increasingly hard to take out bank loans.
Tran Minh Hoang, Chairman of the management board of Vinaland Company said Vietnamese banks had tightened lending to property investors, at a time when the luxury apartment market was flooded.
Real estate websites have tried unsuccessfully to offer gift promotions and discounts to sell the apartments. Offers include 10 per cent discounts, free kitchens, attractive installment plans and dong/dollar exchange rate deals that benefit the buyers.
Doan Nguyen Duc, Chairman of the management board of Hoang Anh Gia Lai said in the near future, the company would implement some projects in District 7, Nha Be District and offer discounts on luxury apartments.
Last year, Hoang Anh Gia Lai decreased apartment prices of Phu Hoang Anh project in Nha Be District from $1,800 to $1,250 per sq.m.
Dinh Quoc Luc, Director of Hoang Linh Property Company said despite the price decrease, the price of $1,300-$2,000 per sq.m for the apartments was too high to suit the pockets of most customers.
vietnamnews
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