Real estate companies offer discounts

In late December, Bcons Construction Investment JSC inaugurated a new block belonging to the Bcons City complex, with many incentive policies.

Real estate companies are gearing up for their end-of-year targets

Accordingly, the buyer will receive a commitment from the investor to sublease at more than $410 per 2-bedroom apartment for the first two years. Furthermore, a 500-600L side-by-side refrigerator will be given to the owner.

In Q4, Nam Long Group, an integrated real estate group, implemented priority policies aiming to assist families in purchasing apartments in its Akari City project.

Clients will only be required to pay a 20 per cent down payment, or a little over $24,600, which can be paid in several instalments until the house is delivered. Of those instalments, the first payment of almost $6,200 will grant the customer ownership.

Additionally, loans are being offered by banks up to 80 per cent of the product value. Purchasers only have to pay a fixed interest rate of 1 per cent annually, or slightly more than $82 per month, until the end of August 2026. They are not required to pay off equity during the first two years.

During the same period, Van Xuan Real Estate Group JSC, a company specialising in the investment, construction, and development of real estate projects in Ho Chi Minh City and Binh Duong, has generated a new push for the soon-to-be-delivered apartment market with a policy requiring customers to only pay 10 per cent of the product's worth upfront for immediate housing.

Given the difficult economic context and sluggish real estate sales, Trinh Thi Kim Lien, sales director at Dat Xanh Services JSC, a real estate services company, believes the marketing race between enterprises in the field is mandatory.

“Bank loans with favourable interest rates are currently only available for the first 6-12 months. Increasing loan support and extending payments is inevitable as businesses need liquidity during this period,” added Lien.

Besides the attempts from real estate enterprises, the government's efforts in promoting public investment, infrastructure development, and transparency in real estate business activities are also key elements in helping the housing market rebound, according to Giang Huynh, associate director and head of research of Savills.

“Facilitating the removal of legal obstacles for projects is another important duty of the government that contributes to the market's recovery. However, investors need to make sure that the project is implemented on time with reasonable selling prices and transparent legalities” Huynh said.

Nguyen Van Dinh, chairman of the Vietnam Association of Realtors said, “Businesses should prioritise project quality and true investment over waiting and overspending on marketing and project promotion. When selling a future-formed housing project, customers’ benefits need to be considered.”

Vietnam: a real estate market rebound in the making Mortgage rates peaked at as high as 16 per cent at some banks in early 2023 but subsequently dropped dramatically. They are now comparable to levels that prevailed before the government’s aggressive policy rate hikes last year sent borrowing rates soaring. Nevertheless, a full revival of sentiment and transaction activity is not likely until mid-2024.

Neighbouring real estate wobbles and their impact on Vietnam For many foreign investors, the two neighbouring countries of Vietnam and China seem to be similar in terms of their socioeconomic and political structure. Thus, investors exercising caution with the Vietnamese market. Prof. Andreas Stoffers, country director of the Friedrich Naumann Foundation in Vietnam, outlined his thoughts to VIR.

Expectations now heightened for real estate in 2024-2025 The eventful year of 2023 is drawing to a close, and for enterprises and investors it is a stepping stone to a 2024 full of hope and positivity. Those in the real estate industry can certainly resonate with this message, particularly in light of the amended laws on Real Estate Business Law and Housing, which were adopted by the National Assembly at the end of November.