Quality condominium projects still a hot property
Quality condominium projects still a hot property
Despite the real estate market slump, some outstanding projects have found a way to beat the gloom and boost sales.
Indochina Land has revealed that its condominium and second-home projects have continued outperforming the dormant market.
Michael Piro, director of sales and marketing of Indochina Land, said in the two recent months, Indochina Plaza Hanoi closed 12 sales with a total transaction value of $3.3 million without any promotional incentives or new finance programs.
“In 2012 most of our buyers were end users who were primarily concerned with construction quality, interior finishing, and the overall amenity/convenience offering. Indochina Plaza Hanoi covers all these key areas better than any other development for sale in Hanoi and this led to tremendous results with over 80 sales last year,” said Piro.
“In the later part of 2012 and into 2013 we have witnessed increased demand and transactions from investors looking to capitalize on excellent rental yields from a quality project like Indochina Plaza Hanoi. Overall investors can earn between 8 per cent and 10 per cent from these condominiums and as interest rates have settled this year with retail rates between 10 per cent and 12 per cent, this presents an excellent opportunity for investors,” he added.
Imperia An Phu in Ho Chi Minh City is another example in which investors have found a way to survive in a stormy seas.
Tran Le Khanh, chairman of Kien A Service and Investment Company, an investor of Imperia An Phu, said that so far 90 per cent of its units had been sold. Among those, 60 per cent had been occupied or leased.
Khanh said that when the real estate market fell into crisis, many projects slowed down construction or stopped construction. Kien A, on the other hand, continued to push up construction to deliver units to users on schedule.
Apart from maintaining a steady schedule, strong investors like Kien A and Indochina Land are also increasing incentives to woo customers.
Khanh from Kien A said he has mapped out flexible financial strategies for customers. “Our sales are based on a “win-win” strategy, in which end-users can own their units for reasonable prices, while investors can sell their products and continue on to other projects.”
Khanh said that Imperia An Phu is one of the first projects in Ho Chi Minh City to provide a “pink book” (housing ownership certificate) for every unit in a record time of just six months from the hand-over.
“The quick process has made a very good impact on the sales of our project, especially in the context that many other projects have been delayed,” Khanh said.
Kien A also provides many flexible financial options to customers. Among them is a scheme whereby users can take over the apartments while having paid only 30 per cent of the total value.
In May this year, Kien A even permitted some customers to pay only 10 per cent and got the apartments.
According to Khanh, these promotions have been particularly successful encouraging the company to expand them to June of this year .
A similarly good offer is on the table in the Happy Valley project, an investment of Phu My Hung company. A whopping 15 banks are providing loans of up to 70 per cent of the total value of the unit for a maximum of 25 years.
This project launched 163 units in the first phase in March and 86 per cent of which were sold. Similarly, in the second phase in May, an equally impressive 80 per cent of the 165 launched units were sold.
Meanwhile, the Indochina Plaza Hanoi last week offered a charming financial support to buyers. With the backing of Vietcombank, valid till August 8, 2013, buyers of Indochina Plaza Hanoi will have access to loans of up to 60 per cent of the condominium value, and better still, customers will enjoy zero per cent interest rate for up to 18 months from the date of first disbursement under the credit agreement.
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