HAG cuts apartment prices, rejects dumping accusation

Oct 4th at 12:58

04-10-2012 12:58:02+07:00

Hoang Anh Gia Lai (HAG) Wednesday put a new apartment project in Ho Chi Minh City’s District 7 on sale at prices that are 30 to 50 percent lower than those of similar projects in the area, while claiming that they are not dumping the unites on the market.

An apartment at the Hoang Anh Thanh Binh is now available at VND20 million a square meter, a very low rate, as earlier promised by the realty giant.

“HAGL did not slash prices out of financial difficulties,” chairman Doan Nguyen Duc told reporters, in rejecting the dumping accusations from insiders.

The selling prices were calculated based on the current realty market developments, and customers’ financial ability, the chairman said.

“It is impossible for apartment prices to remain as high as they were during the prime market years ago,” he said.

“Moreover, we accept that we will gain lower profits to quickly recoup investment, instead of waiting for prices to recover.”

It has become trendy for property firms in Hanoi and Ho Chi Minh City to cut apartment prices by up to one third in the hope of recouping investment to battle current financial problems.

The Hoang Anh Thanh Binh condo project consists of three blocks with around 1,000 apartments. It also includes a brand new apartment style – those spanning 73 square meters with two bedrooms.

Duc said customers will also enjoy flexible payment methods.

“Customers have to pay 30 percent of the contract value in advance, 40 percent in the next 30 months, and 25 percent when receiving the apartment,” he said, adding that the remaining 5 percent will be cleared when the apartment possessing certificate is handed over to the buyers.

Buyers will also be able to borrow 70 percent of the first payment (30 percent of the contract value) without the need to provide proof of income under bank support, the chairman said.