Renting real estate products from customers at attractive prices, giving valuable gifts and deducting them directly from the house price... are ways real estate businesses reduce house prices.
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| Investors introduce many promotional programs to attract buyers. |
Ways to reduce house prices
Caraworld Cam Ranh project, invested by KN Cam Ranh Company Limited, covers an area of nearly 800 hectares, including townhouses, villas, apartments, hotels, etc., and is being offered by the investor at the lowest price of 75 million VND/m2, equivalent to about 7 billion VND/beach townhouse.
This investor also offers many sales policies such as giving 500 million VND immediately to customers who buy houses in this project, 12% discount on product value for customers who pay quickly. All will be deducted directly from the value of the house that customers buy to reduce the price of the house.
At the Artisan Park townhouse project in Thu Dau Mot new city (Binh Duong province), invested by Gamuda Land Group, the scale is 5.6 hectares, including 349 commercial townhouses, the current selling price is from 4 billion VND/house or more. The investor commits to lease the house from customers for 4 years with the amount of 600 million VND. This amount is deducted directly from the house price for customers by the investor.
Giving away gifts or renting out customers' products at high prices is a way to reduce home prices, instead of directly reducing the price.
In the apartment segment, many investors also apply a policy of renting back the house of customers when buying a house, such as Phu Dong Group has a policy of renting back apartments at the price of 15 million/month within 3 years at Phu Dong Sky Garden Project in Di An City (Binh Duong Province). Bcons Group also applies a policy of renting back at the price of 12 million/month within 3 years for apartment products for sale in Binh Duong.
In Long An, Duc Hoa New City land project of An Nong Group is on sale at a price of 30 million VND/m2. To reduce the price, the investor has launched a policy of giving away mini apartments in this project to customers who buy land for a period of 5 years. After that, the investor will rent back the apartment given to customers for 120 million VND/5 years, then deduct that amount directly from the value of the land that customers buy.
Nam Long Group applies a policy of giving away a car worth more than 2 billion VND when customers buy a villa worth more than 20 billion VND at the Waterpoint Nam Long Project in Long An. If the customer does not want to take the car as a gift, the car's value will be calculated in cash and deducted directly from the value of the house the customer buys.
In addition, Nam Long gives away gift vouchers worth 350 million VND to customers. Customers can also deduct the amount directly from the value of the house they buy to reduce the contract value that needs to be paid.
Why not discount the house directly?
According to many investors, giving gifts or renting products from customers at high prices is a way to reduce house prices, instead of directly reducing house prices below the current market price.
Mr. Vo Thanh Dat, General Director of Tay Sai Gon Real Estate Joint Stock Company, said that it would be very difficult for investors to sell at the current market price. “Therefore, investors increase the price of houses by about 10%, or even higher than the current market price, to create a new price level. To sell the products, investors will use policies such as giving gifts, or renting back... and then calculate the cash deduction from the value of the house product so that the value of the house product is equal to the current market transaction level,” said Mr. Dat.
According to Mr. Dat, with this policy, when the market is active, investors can stop the above sales policy and let the house price return to the original value given by the investor, without creating price fluctuations, causing price increases that affect the psychology of customers.
Many opinions say that the market is facing difficulties, investors have to reduce house prices so that low-income people can buy houses and the market is gradually losing mid-range or low-cost real estate products.
However, according to Mr. Nguyen Hoang, an independent real estate expert in Ho Chi Minh City, the story of reducing house prices is impossible for investors. The reason is that the legal licensing time for a project lasts about 3-5 years, while to buy land, investors need a large amount of capital and often borrow from banks with quite high interest rates. The bank interest will be calculated directly into the house price sold to customers. In addition, land tax also increases... Thus, house prices will have to increase, not decrease.
“The story of reducing house prices is being applied by investors to sales policies. Many investors may push the project to high-end, increase real estate prices, then introduce sales policies such as giving money, giving valuable gifts and converting them into cash to reduce house prices… All are in the investor’s calculations to sell products and show customers that buying a house at this time will receive many incentives,” said Mr. Hoang.
Source: https://baodautu.vn/batdongsan/kinh-doanh-dia-oc-tim-cach-giam-gia-nha-d234883.html
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