Probing ways to woo homebuyers

Sep 19th at 12:32

19-09-2012 12:32:45+07:00

Local property developers have been struggling to find ways to step up sluggish home sales but their efforts can hardly pay off if they fail to prove their ability to deliver as planned.

Cash gifts for customers

Vo Thuy Anh, deputy general director of Novaland Company, a subsidiary of Nova Group, said her business has launched a program called “From dream to reality” in celebration of the group’s twentieth anniversary to lure buyers in the Sunrise City apartment project. The developer promises to give away US$1,000, or over VND20 million, each month to each buyer of a two- bedroom condo at the project located on Nguyen Huu Tho Street in HCMC’s District 7.

With the one-year promotion, homebuyers will be able to take back US$12,000 (over VND240 million) from the project owner.

Novaland is also joining hands with VietinBank to offer a financial support package with a fixed lending rate over a period of five years. As such, homebuyers will enjoy a fixed interest rate of a mere 8% per annum for the first year and 10% for the following four years.

The response of homebuyers toward the scheme is positive, with 30 condos already sold, Anh said.

With a total investment of some US$500 million, six of 12 towers of 31-35 floors with about 750 high-class apartments are complete. The apartments cost VND4 billion to VND6 billion a unit. About 80% of 550 finished flats have found buyers, Anh said.

In addition to developers’ direct promotions, the local real estate market has seen secondary investors racing to launch direct or indirect discounts in a bid to attract homebuyers.

Phat Hung Real Estate JSC as a secondary investor of the La Casa project in District 7 has put up for sale the project at discounts of 15-30% and has received positive responses from buyers. For instance, the firm just held a one-day introduction for some 300 visitors, with 20 of them placing deposits.

The promotion allows those making a downpayment equivalent to 98% of the contract value to get a 30% discount, so the eventual price is down to VND13.6-14.6 million per square meter. The project owner plans to deliver the condos next year.

Similarly, Sacomreal-S One Member Limited Company under the umbrella of Sacomreal JSC has launched a promotional package including interior furnishing items and electronic appliances worth a combined VND200 million for buyers of the Belleza project in District 7.

Ta Chi Cuong, deputy general director of the firm, said about 20 guests come to his company a day on average to take a look into the project. “This is a good signal given the current tough market conditions,” he noted.

Only finished condos that count

Things are now different from the past when customers were ready to spend huge amounts making downpayments for apartments on paper. Developers of a majority of projects trying to boost sales at the moment present their completed products or those nearing completion to assure customers that they would deliver homes on schedule.

Anh of Novaland said the condo market has slowed down as there is no rush for clients to buy in the current situation characterized by an oversupply. But she noted those in need of housing are still interested in owning an apartment, especially a completed one, citing the Sunrise City scheme as an example.

Ngo Huu Truong, managing director of Hopefluent – Compareal Vietnam, said now is the right time to buy homes as prices have dipped to reasonable levels.

Truong, however, advised customers to take prudence when it comes to mulling financial matters and the ability of developers to get their projects done on time. He also asked buyers to inspect a number of projects before having a final decision.

A recent survey of Jones Lang LaSalle Vietnam indicates that there are about 85,000 flats on sale in HCMC, of which some 46,000 are finished and the remainder are under construction. The number of unsold apartments accounts for about 34 %.

The company also forecast an additional 16,300 apartments will be launched onto the market this year, meaning supply of the segment will further rise toward the year’s end.