Real estate weathers the crisis.

Difficulties piled upon difficulties.

Mr. Nguyen Quoc Hiep - Chairman of GP Invest and Chairman of the Vietnam Contractors Association - pointed out the reality that construction contractors are at risk of disappearing. “ Never before have construction contractors faced such a dire situation as this year. According to the Ministry of Construction 's report, in the first quarter of 2023, the construction industry experienced negative growth of 3% compared to the same period last year, while according to the Vietnam Contractors Association, only 8% of the annual plan was achieved in the first quarter of 2023. This is the most dire situation ever ."

With the real estate market sluggish, many businesses are struggling to find new directions.

“ There have been many opinions regarding removing obstacles for the real estate market, but no one has mentioned the construction industry, even though the connection between real estate and construction is very close. The construction industry contributed 6% to Vietnam's GDP in 2022. The real estate market needs construction; without construction, there are no projects, no urban landscape, ” Mr. Hiep emphasized.

Approximately 40 businesses belonging to the Central Vietnam Contractors Association are without work. In the South, the group of contractors led by Hoa Binh Construction Group has appealed to the Prime Minister with 21 signatures. Meanwhile, in the North, only a few large businesses with the capacity to implement public investment projects have work.

Help yourself before God helps you.

Alongside numerous businesses that lacked the necessary capabilities and were forced to leave the game, many others remained steadfast, accepting the new context and rules of the game.

Mr. Dao Anh Tuan, Director of TAT Garden House Investment and Development Consulting Joint Stock Company, shared that amidst a difficult market, his company has taken a "contrarian" approach by investing additional capital to develop infrastructure, greenery, and amenities, creating a self-contained ecosystem. " While infrastructure investment was only a certain amount during good market conditions, we've doubled it now that the market is tough. When customers see our products are beautiful and high-quality, they're more likely to buy. This is why, despite the sluggish market, my company's products still have good liquidity ," Mr. Tuan said.

This is an opportunity for us to collectively assess and purify the market. Businesses that are not healthy enough will be eliminated. Businesses with strong capabilities and resources will re-evaluate their direction.

Ms. Nguyen Kieu Oanh - Marketing Director of Sun Property ( Sun Group )

Mr. To Duy Chinh - Sales Director of Kim Oanh Group - shared that Kim Oanh Group is developing and distributing projects to meet the real purchasing needs of customers in Dong Nai and Binh Duong. To stimulate demand, the company is offering preferential policies such as: With only a down payment of 166 million VND, customers can receive their house and enjoy a one-year grace period on principal repayment. In addition, customers also benefit from an interest rate of 9.9% for 36 months. Thus, for an apartment priced at 1 billion VND, only a 10% initial payment is required to own a home.

Mr. Chinh also stated that the company is currently focusing on customers with genuine needs, those who want to buy a home, and are increasingly interested in the social housing segment. The current real estate market is therefore moving closer to its true value, with less speculation than before.

Therefore, Kim Oanh Group has prepared land for the development of low-rise and high-rise social housing projects, built in a systematic and professional manner, in Dong Nai and Binh Duong provinces. It is expected that by June 2023, the company will launch approximately 4,000-5,000 apartments at reasonable prices.

Invest in infrastructure and amenities to attract investors and potentially rent out the apartments.

A representative from a real estate company in Ho Chi Minh City also shared that the company is beginning to research new product models, focusing on experiential aspects and bringing positive living values ​​to residents. “ I have researched the market and found that urban areas with self-contained ecosystems and diverse, modern living experiences still attract buyers. This is because residents buy properties not only to live in but also to explore and relax. We will have to find ways to re-plan our products to attract customers in a similar way ,” this leader analyzed.

Sharing the same view, Ms. Nguyen Kieu Oanh - Marketing Director of Sun Property (Sun Group) - said that the current sluggish and difficult situation is the time to prove the strength and health of real estate businesses. “ I think this is an opportunity for us to collectively assess and purify the market. Businesses that are not healthy enough will be eliminated. Businesses with strong capabilities and resources will re-evaluate their direction to adapt to the current market conditions. At the same time, businesses will have to allocate resources rationally to ensure long-term sustainability through the projects they develop ,” Ms. Oanh affirmed.

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Source: https://vtc.vn/bat-dong-san-vuot-bao-khung-hoang-ar805186.html