The credit crunch in real estate has led many investors "beaten up" when it comes to loans with excessively high interest rates up to 23-24% and even more. Therefore, many projects have been forced to "inflate" the price offered at very attractive level down from VND 4-5 million per square meters.
Promotions are currently popular in the real estate transactions. For example, when land lots at My Phuoc 3 (Ben Cat) are announced for sale, Thien Duc real estate transaction floor launched 2-way approach: awarding SJC gold to land use right buyers and committing to no later than 60 days of red books handing over by 3-stage payment with 60% supported by banks. Rong Phuong Dong (Oriental Dragon) Company, an exclusive distributor of Dai Nam residential project has "committed" to present VND 16 million right at hand of customers who buy land use right and one tenth of a tael of SJC for buyers of two and more land lots at a time.Dat Xanh (Green Land) Service, Construction, and Housing JSC offers PNJ-produced rings, bracelets, and diamond necklaces to buyer of land lots in Giang Dien eco-urban in Dong Nai.
Ms. Tran Thi Tuoi (often called "broker" Trang, a real estate agent in Tan Phu district, Ho Chi Minh city) is selling project land lots in Ben Cat District, Binh Duong Province for VND 235 million per 150 square meters, with free foundation construction service valued VND 80 million. In addition to promotional packages, buyers in Ben Cat who will also be presented with Honda Air Blade motorbikes and much more.
Sunrise City residential project of Novaland Company in District 7, Ho Chi Minh City is integrated with multiple promotions customers' choices. Investors to this project have committed to deliver the houses by next June, customers are recommended to close the deal by payment of 20% of the apartment to be constructed in the future. Upon receiving the house, customers will pay the next 60% of house value and have three options: to live in the apartment for 2 years or leave it for rent in 2 years or lease to Novaland at interest rate of 5% per year within 2 years. After 2 years time, customers will have two choices: if they want buy the whole flat, they will pay the rest 20% of the house value and if they choose not to buy, Novaland will pay back to customers in accordance with USD exchange rate at the time of money return.
The tactic of "offering buying rights on leasing" is a smart approach to capital mobilization from customers in the face of current difficulties. If this program works, investors will earn a substantial financial resources to complete the project and most likely after 2 years when the market recovers, the investors have overcome hardships upon the time customers decide to return the flats.
In fact, beyond from promotional tactics to attract capital from the beginning, products of houses for lower income earners are not affordable due to no reduction or very slight discount in prices. It is because of the fact that the prices are dependent on materials. In the meantime, current high rate of inflation has caused prices of materials to raise sharp; steel price has been doubled while other costs such as land use fees, pre-clearance compensation and other costs (excluding the investment costs are) are still without any decline. Of course, investors can not alone bear the costs, so most prices are not reduced and the apartments have not seen any promotional ways strong enough to attract more capital possibly "advanced" from the customers.
Reported by Nguyen Phuc - Translated by Vi Bao
