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Vietnam: Truth behind big changes in real estate market
HCM City’s estate project developers have been slashing housing prices and offering big discounts to lure buyers.
Some brokers are offering unprecedented prices for shophouses in a project in the southern province of Dong Nai, with prices 50 percent lower than primary prices. For example, products with an initial price of VND15 billion are being offered at VND7.5 billion, and VND13 billion products are now priced at VND6 billion. However, to get the price, buyers have to pay up to 95 percent immediately.
An apartment project in Thu Duc City (HCM City) is being offered for VND70 million per 1sqm. For a 70sqm apartment of VND5 billion, if buyers pay 51 percent of the value immediately, they will enjoy discounts worth VND830 million. The developer will pay an interest rate of 24 percent on early payment amounts to buyers until they receive the apartment. If buyers pay 98 percent of the value immediately, they will enjoy a discount of 45 percent.
For buyers of apartments of a project in the southern province of Binh Duong, they will get 1,000 sqm of land in the Central Highlands province of Gia Lai as gifts if they buy from two apartments. This policy is for the first 20 customers.
Many other real estate developers in HCM City and southern provinces also offer similar policies to attract buyers. The prices offered by brokers are usually 10-20 percent lower than the original prices.
Also, individual investors have lowered housing prices. N, who bought a 60sqm apartment for VND2.2 billion two years ago, is offering the apartment at the same price but he has not found a buyer.
Tran Khanh Quang, a real estate expert, said realtors have had to slash selling prices because they need cash, as credit and bond issuance has tightened. Loan interest rates have increased, while liquidity has decreased over the past few months.
For a discount rate of up to 50 percent offered by some distributors, Dinh The Hien, a respected expert, said that real estate firms can still make a profit but speculators may take a loss.
Duy Anh
Source: https://vietnamnet.vn/en/truth-behind-big-changes-in-real-estate-market-2079474.html