Despite falling property prices, buyers remain cautious.
Many apartment projects are offering discounts of up to 40% and big promotions, but customers are still waiting for even deeper price reductions.
In the final days of the year, contrary to the rising prices of many essential consumer goods, the real estate market is experiencing a wave of price reductions and clearance sales. However, customers remain cautious, hoping for even lower prices next year.
Huge discounts, amazing promotions…
In recent days, many real estate projects have been widely mentioned in the media, such as Discovery Complex, Ha Do Park View Project, Golden Place, Mandarin Garden, Eurowindow Multi Complex, Nam Do Complex, Au Co Tower…
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Many real estate projects have seen significant price reductions. |
Notably, these projects are all being offered at significantly reduced prices compared to not long ago. Specifically: Discovery Complex project is being offered at 27 million VND/m2 (previously 36 million VND/m2); Ha Do Park View project has just reduced its price to 22.7 million VND/m2 (previously 26.3 million VND/m2); Golden Place project is selling at 22.6 million VND/m2 (previously 27 million VND/m2), a decrease of approximately 35% compared to the peak price of around 35 million VND/m2.
Some projects have reduced prices by over 30%, such as: Mandarin Garden project selling at 28-29 million VND/m2 (previously 45 million VND/m2); Eurowindow Multi Complex apartment project priced at 30-35 million VND/m2 (previously 55-58 million VND/m2)...
In addition, several projects with huge promotions have appeared on the market. For example, the Golden Land Building Commercial-Service-Residential Center at 275 Nguyen Trai has launched a promotion: Buy a house and receive a car worth up to 650 million VND. Furthermore, customers who have already purchased apartments in the project can participate in a raffle to win 5 Sony 42-inch TVs and receive other meaningful gifts…
Or register to buy an apartment in the project.
Khang Linh Real Estate Company is offering a VND 1 billion discount to all customers purchasing a pair of properties at the Metropolitan Vung Tau central urban area project and the OCEANAMI Long Hai resort villa project. Discounts of up to 40% are also available for customers purchasing properties at the Khang Gia Han high-end residential area (Ward 11, Vung Tau City)...
Why are people still wary?
For buyers, two key factors influence their decision to buy or not buy a house in a particular project: price and construction progress. Regarding progress, projects usually commit to meeting deadlines, or even completing projects ahead of schedule.
However, despite reports of numerous projects experiencing delays, and even some projects exceeding deadlines, customers are complaining about incomplete shared infrastructure such as playgrounds, fire safety systems, parking lots, and security. Meanwhile, many projects offering significant price reductions often have a one-to-two-year waiting period before handover, making it even harder to stimulate genuine demand.
In particular, price is currently the focus of attention for customers in the real estate market. Recently, a series of expert predictions about the trend of further declines in house prices have caused customers who have already bought houses to regret their purchases, while those planning to buy are cautious and waiting for even deeper price drops.
This cautious sentiment is further reinforced by information that apartment projects are competing to lower prices, with discounts varying widely, from 5%, 10%, and even up to 40%.
Looking back at the predictions of experts and real estate investors from mid-2012, it seems that by the end of 2012, the real estate market and property prices would recover, or even begin a new upward cycle. In reality, after the first week of 2013, property prices have not recovered at all; instead, a series of projects are liquidating their inventory and selling off properties at bargain prices.
Furthermore, many experts frankly advise people with genuine housing needs not to rush into buying a house because real estate prices will fall even further. That will be the time when people with a real need to buy a house will have the opportunity to buy a house at its true value.
Another factor considered to be crucial in supporting the liquidity of the real estate market is bank capital. Many reports suggest that banks have been and will continue to be more open, offering more preferential loan terms to stimulate consumption and help alleviate difficulties in the real estate market. However, in reality, people still complain about the difficulty in accessing loans.
Many secondary investors, after a period of "holding on" and waiting for the market to recover before selling their holdings to recoup their initial capital, faced numerous forecasts for 2013 indicating continued economic difficulties both domestically and internationally. The sluggish market and plummeting prices forced many secondary investors to sell off their holdings to cut their losses.
According to forecasts by real estate research and consulting firm Knight Frank, the 2013 market is expected to remain sluggish, and asking prices for apartments may continue to decline in the first half of the year.
According to VOV-HV
