The discount or sale-off programs of property projects, in such a gloomy market, are seen as brilliant idea to stimulate demand, the Lao Dong newspaper reported.
As from the beginning of 2012, a lot of real estate projects in Hanoi have offered promotion programs and cooperation with banks to support buyers.
Apart from the payment divided into many phases, Daewoo Cleve in coordination with banks to help house buyers borrow loans in Payment Phase 2 and Phase 4 with an amount of 25% of house value. Noticeably, the loans carried a soft interest rate of 12% per annum with monthly interest payment method and the principal will be paid as delivering houses in Q1 of 2014.
For Sky Garden project in Dinh Cong St (Hanoi), the investor also launched a preferential policy in the first capital contribution phase. Customers who pay 80% of property value will enjoy a discount of 10% of selling price. Especially, buyers will be funded up to 70% of capital through 3 years by banks.
Several common condominium projects also are racing to give gifts to attract buyers, such as a 2% discount or a 20 million dong voucher for buyers in Tan Tay Do Condo building, or a 50-million dong furniture package in Green Park project.
Generally, property project investors are aiming at real demanders whose budget is different from speculators’. So investors should have certain sharing with customers to boost sales and stimulate demand.
Mr Dang Van Quang, Director of Navigat real estate consulting firm, said that we should not be too pessimistic as the condominium market en mass offered discount, sale-off, or gift offering because in his opinion, reducing prices is an intelligent method to stimulate demand in such a gloomy situation like now.
Massive discount or promotion offering will push investors into risks. However, the market goes down, investors are forced to reduce expected profits. Even, after promotions, selling price may be back to principal investment cost, according to Mr Pham Thanh Mai-General Secretary of Vietnam Real Estate Association.
“In case of rising interest rates, increasing costs for construction materials or labour wage as well as other costs, projects may face big losses”, he emphasized.
The more importance, as said by Minister of Construction Trinh Dinh Dung, property firms need to restructure products which should be in medium and small size so as to be suitable with majority of real buyers.
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