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Back to original prices
Some project owners in Hanoi are planning to launch a “festival” at the National Convention Center on September 24-25 in which customers can buy houses at original prices.
This will probably be the first such festival and this is an interesting piece of news not only for those who want to buy houses but also for small investors on the market. The products to be transacted in this event will be apartments, land lots, villas, semi-detached houses, and mini apartments.
Buyers are supposed not to do the bargaining as the prices are reportedly evaluated by the organizing committee in accordance with the Government’s property transaction regulations.
The organizing committee expects this will be an occasion to help realty companies tap the public’s financial sources via direct sales at a time when the real estate market is mired in troubles.
Home buyers will have the opportunity to gain access to real estate at real prices and get advice on finance, banking, legal, notary, and real estate valuation services providers.
However, many people are skeptical about this program, saying offering houses at original prices is merely a pretext to sell out products of developers and stimulate demand when the market both in Hanoi and HCMC remains dreary at present.
Weak liquidity, coupled with monetary tightening, is making investors more cautious while house buyers are also careful and wait for better chances to buy apartments.
To be able to sell their products, over the past time, most investors have launched numerous promotion programs to attract buyers, including loan interest support, lucky draws, discounts, and flexible monthly payments.
The promotion programs are what project developers have mostly relied on to sell their apartments when they fail to offer direct discounts. Sales have been slow as customers fear the values of houses will continue to decline.
Realty experts said it is hard to determine the original price of property.
Sai Gon Tiep Thi newspaper quoted Dat Viet trading floor director Vu Dinh Nang as saying, “Apart from its purpose to reduce stock, the upcoming festival is like a public relations event of realty firms aimed at riding through the gloomy market.”
Organizers of the event expect there will be some 1,000 transactions, and around 10,000 visitors to the two-day event.
A large realty corporation which owns a thousand apartments in Hanoi said participating in the festival will help it find potential buyers.
On the Hanoi market, however, due to the imbalance between demand and supply, the difference between prices announced by property developers and offered prices is quite big. Meanwhile, prices are quite stable on the HCMC market as supply is abundant.
At some projects, as investors want to reduce losses they are willing to sell their apartments at the prices even lower than those announced by project owners.
During a conference held lately by the HCMC Real Estate Association, project developers were urged to slash prices by more than 30% to stimulate demand as seen two years ago.
However, some developers said that different from the Hanoi market, selling prices of apartments in HCMC can hardly be cut further.
vietnamnet
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