Commercial Houses in a Race of Price Reduction

Source: Pano feed

201372174616_20131.jpg


While Vietnamese real estate market keeps being frozen, the VND30 trillion credit package for social housing sector has been launched. It has invisibly created a considerable pressure for commercial house sector. Facing with this, commercial housing investors have made measures to attract clients.


Price reduction


Large difference in price between commercial houses and social houses becomes a huge barrier for liquidity of current real estate market. Economic difficulty has considerably influenced demands in real estate market, on the other hand, prices of commercial houses become unaffordable to the majority, so the VND30 trillion credit package to support low income people buying social houses has made great pressure to commercial house sector.


In order to cope with these difficulties, some investors have implemented solution in depreciating price to be close with social house price, and it is a target as well as a business strategy of many investors in commercial house sector in recent time.


This has led to the establishment of a new pricing in many areas. Dat Xanh Group has offered apartments of tenement house OCT2 – Xuan Phuong Viglacera Urban Area (Tu Liem, Hanoi) at the price from VND777 million (including VAT)/ a unit. OCT2 with 19 floors, one basement with total area of 21,000 sq. metres, providing 204 high quality apartments varying from 57.4 sq. metres to 106,9 sq. metres, at price from VND13.4 million/ a sq. metre (including VAT). The low price and small area (from 57.4 sq. metres) help customers to be qualified for loans from the support package of VND 30 trillion.


Viglacera is also offering small area commercial apartments in CT6 tenement house, Dang Xa Urban Area (Gia Lam, Hanoi). Accordingly, only with VND542 million (including VAT) customers can possess a high quality apartment that is to be handed over in quarter I/2014.


Besides, many new projects about to be completed soon are also offered at attractive prices such as Castle Plaza at 136 Ho Tung Mau of Vinaconex 7 priced VND14.7 million/a sq. metre; 35 floor Sun Garden at 89 Phung Hung, Ha Dong, Hanoi priced VND14 million – 16 million/ a sq. metre; Kim Van – Kim Lu in Dai Kim, Hoang Mai priced VND13 million – 15 million/a sq. metre for a unit of area of 45 – 77 sq. metre.


Favourable incentives


Besides favourable prices, to improve liquidity for their projects, many project owners apply many attractive policies such as flexible payment scheme; presenting TV, air conditioner, car, motorbike; ability of choosing apartment based on completion level and so on such as CT6 (Dang Xa, Gia Lam) offers 2 attractive product package like: incomplete apartment at a price from VND 11.5 million a sq. metre (including VAT), and complete apartment at a price from VND13.6 million a sq. metre.


In Ho Chi Minh City market, many project owners are offering a competitive price, applying promotion programmes. Homyland 2, for example, is planning to be officially on sales on 29th July with apartments that have an area from 60 sq. metre at a price of VND16 million a sq. metre. Clients are entitled with supported loans of up to 70 percent of apartment value, loan maturity of 15 years, and will receive valuable presents and other favourable conditions.


One of the most popular policies applied by project owners that brought a high result recently is the cooperation between project owners and commercial banks to offer customers soft loans. Many banks have granted loans with interest rate just from 0 – 6 percent a year.


Mr Nguyen The Diep, Chairman of Song Hong Corporation said that it is very encouraging when project owners are reducing prices and have many favourable conditions to attract customers. The spirit of overcoming difficulties of real estate enterprises not only helps enterprises handle with inventories, outdo difficulties in production and trading, but also affects largely social life.


In current context, it is proper when project owners keep reducing prices, because against objective difficulties made by the market, if enterprises do not react themselves to adapt to the environment, financial pressure may kill enterprises. “The Government should continue offering favourable policies for real estate enterprises, especially for commercial housing, because this segment makes up the largest proportion of the real estate market”, Mr Diep added.

Luong Tuan




Đăng ký: VietNam News