Spiking southern property buyers’ interest an uphill task

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On March 26, the Daewon-Thu Duc Housing Development Joint Stock Company launched its model housing and unveiled a plan to sell 200 apartments within the Cantavil-Premier project which is a $70 million, 36-story property positioned in Ho Chi Minh City’s District 2.

“We are confident in going forward despite the market’s standstill,” said company general director Howang Yu Nam.

Earlier, on March 21, the developer of Thanh Da View project Thanh Yen Joint Stock Company rolled out 132 top-class apartments under the project which is situated in Binh Thanh district’s Thanh Da peninsula into the market starting from VND29.9 million ($1,444) per square metre. Around 30 customers registered to become owners of these luxurious residences.

Thu Duc Housing Development Joint Stock Company (TDH) also offered for sale 80 apartments ranging from 54.9 to 120.3 square metres and six penthouses with area from 115 to 149.1sqm at around VND15.9 million ($768.1) per square metre. These properties are within the company’ TDH-Phuoc Binh apartment complex in District 9.

In mid March, Dai Thanh Company launched around 400 apartments within Tan Phu district’s Dai Thanh complex at a competitive pricing terms of VND13.1 million ($632.8) per square metre.

According to preliminary surveys, more than 10 apartment projects based in Ho Chi Minh City were put on sale in March alone.

CBRE Vietnam deputy director Nguyen Nguyen Thai said around 40,000 apartments would be rolled into the city market within 2011, irrespective of another 10,000 ‘stockpiled’ apartments from 2010. This would mean that project developers bear high pressures amid excessive supply sources.

A CBRE survey showed that developers of a number of apartment projects intended to market their products in late 2010. They later extended the date of launching to wait for market improvements.

To recoup capital, businesses had to lower initial prices to boost sales. For example Dai Thanh Company, developer of Tan Phu district’s apartment project, pulled down its price from VND14.9 million ($719.8) to VND12.7 million ($613.5) million per square metre for wholesale customers.