Confidence key to unlocking door
Confidence key to unlocking door
Increased buyer confidence holds the key to the property market’s recovery.
In fact, both the supply and demand of apartments in Ho Chi Minh City are high, but the question is how to marry the two.
Accommodation, normally, is an urgent and always existing need. The average housing area of Vietnamese people is at more than 13 square metres per capita. This figure is expected to be at 15sqm in 2015 and 20sqm in 2020.
In summary, the country has more than a billion square metres of housing and this will rise to two billion in 2020. Thus, every year Vietnam has to build 100 million square metres of housing. This underscores the property market’s huge potential.
However, developers are facing many difficulties, apart from the economic downturn. One of the key reasons is people have lost their belief in the real estate market, developers’ construction quality and after sales services.
So how to get buyers back onside?
Developers face many difficulties in such a tough situation that cannot be entirely blamed on the market.
Specifically, they have to review their human resources’ efficiency, the projects’ implementation, design, management, operation problems. Also, price is still the key issue as many developers have not paid much attention to this.
The mid-range apartments will be key products for Ho Chi Minh City’s market in 2013. So, developers must have a suitable pricing strategy, quality, schedule, services and financial support for buyers if they are to prosper in this competitive market. Besides, the recent supporting policy package such as the VND30 trillion ($1.4 billion) credit package is just the initial step and we cannot predict its effectiveness.
Dat Xanh Group is one developer that highly appreciates having a suitable market strategy. Its development strategy aims to meet real demand of end-users with mid-range apartments and land plots for real demand or long-term investments.
That is why in the recent years, its projects such as Sunview 3, 4S Linh Dong in Ho Chi Minh City or Goldhill in Dong Nai province have been welcomed by customers and achieved high sales.
Besides, to bring a better life for customers through comprehensive solutions, the added value and customer care services, Dat Xanh has outlined a right business strategy based on market changes, to forecast and set up an appropriate product portfolio.
This year, Dat Xanh continues to invest new projects, introducing its strategic products to the customers as well as implementing affordable apartment projects and those products will soon be launched to the market.
Ho Chi Minh City’s apartment market still has room for all segments. The first concern is not the price, but apartments in every segment much prove their construction quality, efficiency and good living environment.
According to a research done by Dat Xanh, despite a declining market there are still many customers who wish to purchase apartments, in both the low-price and high-end segments. Research indicates that there should be no discrimination between different apartment segments in the coming time, when the market is warming up, because each segment has its own role. Despite the mid-end segment currently dominating the market, the high-end segment still plays a certain role in the development of the big cities like Ho Chi Minh City.
At present, we see that prices in many projects have become affordable to many end-users and well-located projects will attract buyers. The high-end apartment segment is still facing difficulties, but beautiful locations and good quality projects are still hunted by customers.
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