Fireworks fail to fire-up market

While many developers have not sold any properties in recent times, a number of others are smiling with bright property sales generated by the thousands of visitors touching down to see teams from Italy, Canada, France, China and Vietnam explode into action during April 29-30.

“We have never seen such a huge interest in the Furama Villas during the firework competition as this year,” said Nguyen Duc Quynh, executive assistant manager of Furama Resort, which managed 31 units of the Furama Villas. Quynh revealed that Furama Villas welcomed 50 visitors during the competition and sold nine villas worth VND145 billion ($7 million).

Michael Piro, director of sales and marketing at Indochina Land, said he recorded three transactions during the weekend competition including two Hyatt condominiums and one Montgomerie  Links villa for total sales valued at $1.4 million. “We were pleased with these results as it demonstrates there is still real demand for our products despite the challenging market conditions,” said Piro.

“Based on past experience, three transactions during weekend should translate into an additional five sales with follow ups from the weekend as we have a number of warm prospects,” he added.
Piro said during the fireworks weekend, his team made contact with over 55 prospects and the majority of the prospects he was working with were introduced by existing buyers and all three sales were the result of referrals from existing buyers.

Thanh Do Investment Development and Construction also took advantage of the annual firework competition, in which the Italian team was crowned winners this year, to launch its The Empire Resort and Residences, with villas sold at almost $300,000 a unit.  

However, many other developers saw few sales with land plots and apartments in new urban projects failing to inspire buyers, in stark contrast to previous years. Construction of some holiday home projects such as the Song at Le Meridien Danang Resort and Spa ground to a halt as developers suffer financial constraints. Quynh and Piro said buyers were getting more sophisticated now. 
   
“Buyers today are taking more time to examine the properties, they are looking at established resort communities opposed to buying off-plan,” said Piro. “Rather than being sold on a vision, they are able to experience what they are buying first hand.  They are choosing communities where their friends and family have already purchased.”

Quynh said buyers were purchasing not based on the “herd effect” like before, and they were scrutinising properties carefully. “Buyers are purchasing with a very clear purpose, as an investment decision or for living,” said Quynh. “They even asked a lot about property management.”