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Second stimulus package boost high grade apartment sales
The government’s announcement on the second stimulus package is helping sales of high grade apartments.
Hanoi’s real estate market is now quite different from two months ago. Previously, people rushed to purchase land in suburban areas of the city and refused to purchase apartments. Meanwhile, they are now scrambling for apartments.
The developer behind the Tricon Towers project said that on September 26, the first day the apartments were put on public sale, 50 clients registered to purchase apartments. To date, 400 out of the 700 available apartments have found buyers.
All apartments at Dolphin Plaza in My Dinh new urban area put on sale in the last two sales release have sold out even at prices of between $1,800 and $1,850 per square metre. The investor is preparing for the third sales release, when the apartment price is expected to be higher .
Within just one month, the investors of Mulberry Lane Ha Dong and Indochina Plaza Hanoi projects sold out all 1,000 apartments of E, D and C blocs at $1,800-2,200 per square metre
Despite the high price of $2,500-2,800 per square metre, Pham Huynh Long, an executive of Indochina Plaza Hanoi project said that 90 percent of projects had been sold within just two weeks since the show apartment was opened. He said that only some 20 apartments with the area of 130 square metres that face west have been left
Explaining the quick sale of high grade apartments, Dang Hung Vo, senior advisor of the Ministry of Natural Resources and the Environment, believes that the information about the launching of the second stimulus package has helped the market warm.
Vo said that with the launching of the second stimulus package, a large sum of money will be poured into the real estate market, thus making land and house prices increase.
“Therefore, they reasonably think that it is now the best time to purchase products which they will be able to sell later to make profit when prices increase,” Vo said.
Besides, Vo said, as the dollar and gold prices fluctuate all the time, people would rather to invest in real estate, this way they feel safer.
Vo went on to say real estate investors well understand northern people, especially Hanoians, who always “keep money and wait for opportunities” and only make purchases when they see signs of prices increasing. They well understand that people now want to hold assets instead of money when consumer price index keeps rising. Therefore, they believe that it is now the right time to sell products and raise sale prices.
Real estate analysts believe that a group of young clients with the stable income of 10 million dong and higher are now interested in high grade products. According to Edward Chi, an expert, the ‘taste’ of clients has changed. Those clients with high stable income now prefer turn-key apartments with all the necessary equipment provided.
Nguyen Do Viet, deputy general director of Nam Cuong Group, said that though high grade apartments once sold slowly in the gloomy period of the real estate market, they always can catch attention from buyers, because the apartments have always been heavily invested.
Viet believes that the real estate price is inevitable. “When the dollar and gold prices both increase, real estate investors will have to raise the sale prices of real estate products,” he said.
VietNamNet, DTCK
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