Recently, a condominium project in the western part of Ho Chi Minh City called Akari City phase 2 by Nam Long has impressed buyers with its attractive sales policies right after the Lunar New Year. According to the policies, buyers only need to pay 40% in 5 installments until they receive the property (December 2024). If they choose to borrow money, the bank will disburse the corresponding amount from the 3rd installment. The buyers only need to have 30% of the total value of the property, and the bank will provide a loan of up to 70% of the value. Moreover, buyers do not need to repay the principal for 2 years, only the fixed interest rate of 1% per year until August 2026.
Therefore, if a customer buys a 2-bedroom, 2-bathroom AK NEO apartment with an area of over 80m2, they only need to pay 440 million VND for the 1st installment as a down payment. From the 3rd installment, they will only need to pay the fixed interest rate of 1% per year, which is equivalent to 2.5 million VND per month. This amount is lower than the average monthly cost of renting a house for a family.
Another example is the Flora Panorama condominium project located in Mizuki Park in the southern part of Ho Chi Minh City. The developer has continuously offered generous support policies for homebuyers. In addition to receiving 500 million VND worth of high-end interior furniture, buyers can move in immediately in March 2024. For buyers who choose to borrow money, the bank will provide a loan of up to 70% of the value of the apartment. Buyers do not need to repay the principal for 2 years, only the fixed interest rate of 2% per year for 24 months, which is equivalent to about 4 million VND per month. Buyers can receive the apartment in December 2024. The monthly installment amount is not much different from the cost of renting a house, while buyers have the opportunity to own a million dollar apartment in Ho Chi Minh City.
Attractive sales policies from developers continue to drive the real estate market after the Lunar New Year. Photo: Illustration
Recently, a condominium project in Di An, Binh Duong also announced a gift of 10 gold taels and a 10% discount for the first 10 units when customers sign a sales contract. This policy has rarely appeared in the sales strategy of businesses in the past 5 years.
According to Batdongsan.com.vn, the effect of sales policies from the third quarter of 2023 is spreading and taking effect at the beginning of 2024. Immediately after the Lunar New Year, the demand for searching for apartments has increased, partly due to the attractive sales policies from developers. Compared to the beginning of 2023, the real estate market in the beginning of this year shows more positive signs in terms of interest and listing volume. Data from this source shows that the nationwide demand for buying real estate in January 2024 increased by 66% compared to the same period in 2023, and the number of real estate listings for sale also increased by 52%.
A survey of some condominium projects in Ho Chi Minh City and surrounding areas shows that the demand is mainly focused on actual needs, with less emphasis on investment. However, thanks to the extended payment policies of some projects, they have attracted the capital of investors participating in the market. Investors are taking advantage of the sales policies from developers to increase their future profit margins. Taking advantage of the current situation to “catch the wave” before the real estate prices can increase is a reasonable action by investors.
In a recent report, Ms. Trang Le – Head of Research at JLL Vietnam, said that the demand for buying residential apartments is still dominant in projects with reasonable prices. The scarcity of apartment supply in Ho Chi Minh City has created high demand. Projects with a price range of 3-5 billion VND per unit, good legal status, good sales policies, and reputable developers are still attracting a good number of buyers. At the same time, the demand for investing in rental apartments is increasing in Ho Chi Minh City. The demand in this market is quite large. The primary renters are young families who want to experience living in an apartment before making a purchase decision. This is an interesting growth trend of the apartment market, showing that there is always a real need for housing.
According to Ms. Trang Le, although the price level of primary apartments has shown no signs of decreasing, the demand for buying apartments is still increasing in urban areas. This is also the segment that is forecasted to recover the soonest as it mostly serves actual needs.
“Good sales policies, interest rate support, and extended incentives are the great efforts of developers in difficult times. They are also significant opportunities for homebuyers,” Ms. Trang Le shared.
