Developers make product quality vow

November 16, 2020 | 11:41
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The supply of residential units has sharply decreased both in Hanoi and Ho Chi Minh City this year, seriously impacted by the double crisis of the pandemic and slow process in reviewing projects and forcing developers to be versatile in order to grow.
developers make product quality vow
Hopes are high for a more vibrant real estate market in 2021, Le Toan

According to figures from CBRE Vietnam, launched unit numbers fell by 57 per cent in Ho Chi Minh City and 67 per cent in the capital over the first nine months of 2020. The number of sold units also dropped to 62 per cent in Ho Chi Minh City and 67 per cent in Hanoi respectively. CBRE Vietnam director Vo Huynh Tuan Kiet said that hundreds of projects have been delayed.

In 2021, it is hoped over 17,000 units can be launched in Ho Chi Minh City with more than 16,000 of them sold. In the Hanoi market, 21,000 of around 25,000 units are projected to be sold successfully.

Seriously impacted by the ongoing pandemic and the downturn of the market, residential developers are struggling to find solutions to maintain their business and further develop, with improving quality of products and management services being the major targets.

According to Andy Han Suk, general director of SonKim Land, instead of lowering prices or offering more promotion packages, the group is focusing on maintaining product quality as a commitment to buyers.

“We are focusing on satisfying our customers so that they will be proud when investing in SonKim Land in the next couple of years,” Suk said at a conference on real estate development, held in Ho Chi Minh City last week.


Nguyen The Nhien, general director of Hung Thinh Land, a representative for mid-end housing developers, said that in front of a hard market, this group is offering flexible solutions to cope with difficulties. “We currently have a portfolio of more than 100 projects with total land area of 4,500 hectares located in many provinces nationwide. This is a very good foundation for us to develop in the next period,” Nhien said.

This year, Hung Thinh has been researching and improving its product quality in order to be more suitable for customer tastes. Accordingly, units built by Hung Thinh Land are designed to harmonise with nature and are equipped with smart and advanced facilities.

Instead of developing projects in the inner cities, Hung Thinh is expanding its portfolio to satellite and non-business districts where the demand of accommodation is increasing and the developer can offer more affordable houses for end-users.

Meanwhile, Angus Liew of Gamuda Land revealed that it will soon launch a virtual space where buyers can have a real look at their targeted units and accommodate with sales without having to go directly to the sales centre. Liew confirmed that this solution is going to be applied for all Gamuda Land schemes in the global market.

The developer is reserving a special team to deal with customers and provide support if they want to re-sell or release their units.

“The most important thing is to cooperate closely with customers and offer support from A to Z, even in the post-sale period,” Liew said.

Excited about the prospects for the real estate market in the coming time, Liew added that the trend of foreigners to come and buy homes in Vietnam will increase when the pandemic is controlled and the movement trend of investors from other countries to Vietnam rises again.

Property promise

Meanwhile in the inbound market, the potential of residential products remains high thanks to the basic foundations of a large population and increasing incomes, as well as the more open policy from bankers. Suk from SonKim Land confirmed that his latest project located in Thu Thiem New Urban Area has caught high interest from buyers, especially in the past month as investors look to select safety assets in a time of crisis.

Jason Turnbull, deputy general director cum financial director from Masterise Homes, also commented that demand for high-end accommodation in Vietnam is high. “Our projects have been well received by buyers over the recent period and we are launching more projects to the market very soon,” Turnbull said.

Apart from the domestic market, Masterise Homes is also offering selective types of accommodation for overseas buyers. “Foreign direct investment is continuing and will lead to the increased demand of accommodation from foreign experts. Currently this trend is limited in Vietnam; however, if and when we get a vaccine for the coronavirus, foreigners will come back to Vietnam,” he forecasted.

“Compared to other Asian countries, the urbanisation rate of Vietnam is outstanding. Many new houses must be built while many others are in need of reconstruction,” he said.

The controlling and management of the pandemic from the government has ensured that Vietnam can become one of the most attractive destinations for investors and developers heading into the new year – and the east of both Hanoi and Ho Chi Minh City are already attracting developers and homebuyers.

CBRE predicted that by 2025, the supply of residential units in the planned Thu Duc city (which is combining Ho Chi Minh City’s districts 1 and 2, and Thu Duc) will increase by nearly 45 per cent, to a total of 198,000 units. Infrastructure for the area has been completed with a range of newly-built projects such as the East Bus Station, Metroline 1, and Thu Thiem 2 Bridge.

By Bich Ngoc

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