Real estate investors save themselves with various stimulus measures

According to the report of the Vietnam Association of Realtors (VARs), in the second quarter of 2023, there were about 200 housing projects nationwide for sale, supplying the market with about 20,000 products, but most of them were projects in the next phases.

Most of the housing supply opened for sale in the quarter was in the low-rise housing and land segment, while the supply of apartments continued to be scarce. In particular, the affordable apartment segment priced under VND25 million was almost “extinct”, with only a few, rare ones located far from the center of large cities, or in urban areas of type 1 or below.

Real estate investor saves himself with 1 size model — In the context of the market not being able to recover, many investors have to "launch" incentives to stimulate market demand, such as reducing prices, increasing discounts,... (Photo: TN)

Also according to the VARs report, some apartment projects in big cities like Hanoi and Ho Chi Minh City suddenly had price reductions.

In Hanoi, the average apartment selling price has generally increased and remained high, as newly launched projects are mainly high-end projects, averaging VND52 million/m2, up 1.46% over the previous quarter. However, in Thanh Tri, apartment prices unexpectedly dropped by 10%, reaching an average of about VND30 million/m2.

In Ho Chi Minh City, apartment prices in Hoc Mon district dropped sharply by 22%, and apartment prices in Binh Chanh dropped slightly by about 2%. Notably, one of the real estate “hot spots” in Ho Chi Minh City is District 9 (old), now located in Thu Duc city, where apartment prices suddenly dropped by 18%.

The reason why some apartment projects have reduced prices in the current context is because the consumption is quite low. The consumption of most apartment segments is below 40% of the total supply.

Therefore, many investors have to "launch" incentives to stimulate market demand, such as reducing prices, increasing discounts,...

Mr. Nguyen Van Dinh, Chairman of VARs revealed: Some investors apply many preferential policies for both home buyers and distribution agents, such as prepaying marketing and communication costs for agents, reducing the amount of deposit received, and extending payment time.

There are also investors who offer early house receiving policies, only need to pay 30%-40% of the value, while previously it had to be 95%; Increase discounts, attractive payment methods, especially for customers using cash...

“Some apartment projects developed by reputable investors, introduced to the market with breakthrough incentive policies, recorded a large number of bookings, “lighting up” the relatively gloomy picture of the market,” said Mr. Dinh.

Meanwhile, Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn in the Southern region, said that for the real estate market, the most exciting battle at the moment is the "competition" of policies between investors.

This not only reflects how "indulgent" the customer is, but also measures the potential of the business in the story of trust and reputation. Investors are almost "shouldering" all the financial pressure for customers, providing solutions to handle all the risks that make them hesitate to spend money.

According to Mr. Tuan, if home buyers are afraid of borrowing money and are afraid of interest rates, investors can support interest rates for 2-3 years, even 6-7 years, extend payment periods, and divide monthly payment costs.

If investors are afraid of not generating cash flow and leaving money “dormant” in real estate, investors have commitments to re-lease with fixed profits.

“Even if customers are reluctant to save a lot of money to pay the first payment, the investor is willing to lower the initial payment so that buyers no longer have to worry about financial matters,” Mr. Tuan shared.

In addition, the Director of Batdongsan.com.vn also said that in the first 6 months of 2023, the primary selling price of most projects has almost not increased. If the investor's discount costs are added, the house price has decreased compared to previous times. Therefore, Mr. Tuan believes that this is the time when home buyers have the most advantages.

“When the market is in a state of uncertainty, that is the most attractive time for home buyers to make decisions. Once the market recovers, the current deep incentives will no longer appear. Therefore, buyers need to take advantage of the opportunity at the right time,” Mr. Tuan emphasized.

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