Ho Chi Minh City property sales slow despite lower prices

For instance, in late 2011 PetroVietnam Power Land JSC (PVL) scaled down price of its Petro Vietnam Landmark project in Ho Chi Minh City’s District 2 from VND23.8 million ($1,130) to VND15.4 million ($7,380) per square metre. The outcome, however, was said to below expectations.

Most recently, Le Thanh Company declared slashing VND2 million ($95) per square metre at its Twin Towers project from VND13.9 million ($660) to VND11.9 million ($566) per square metre but sales were flat. The developer then had to divide apartments into smaller units to put on lease.

Earlier, Dai Thanh Company cut down apartment price at its Dai Thanh project in Tan Phu district but sales were scarce.

General director Le Hung at Hoang Anh Housing Construction and Development JSC under Hoang Anh Gia Lai Group said in current property market doldrums softening prices could be a remedy. But if the move was not taken in the right time when lacking suitable support scheme, he added, it might bring counter effects to project developers.

“Pricing is important but to convince buyers at this time a bunch of factors would be required including project site, developer’s brand value and particularly project’s pace,” Hung commented.

Hoang Anh Saigon Real Estate Company general director Doan Chi Thanh said softer prices would not help unless developers proved their financial strength to come up with the projects.

Unlike above projects, several projects with Hoang Anh Gia Lai Group as developer reported healthy sales figures after launching price discounts.

These were hi-end Hoang Anh River View apartment project in District 2 which saw prices shedding to VND18.2 million ($8,650) per squarer metre from over VND25 million ($1,190) or Hoang Anh Thanh Binh project in District 7 with halved price compared to that at property projects in nearby locations.