According to a recent report by DKRA, new supply and primary supply in the whole market decreased by 60% and 68% respectively compared to 2022, which is also the lowest level in the past 5 years, with projects concentrated in Ho Chi Minh City and Binh Duong. Market demand recorded a slight increase in the second half of the year, but in the whole year of 2023, the consumption rate only reached about 44% of the primary supply in the whole market, which is also the lowest level compared to the average of 2020 - 2022 (ranging from 68% - 87%).
Primary consumption is concentrated in mid-range projects with prices ranging from 40 - 55 million VND/m2, with completed legal procedures, rapid construction progress, and convenient connections to the city center. Primary selling prices have not fluctuated much compared to the beginning of the year, however, investors have promoted many policies of quick payment discounts, principal and interest grace periods, etc. to stimulate buyers. Meanwhile, secondary liquidity remains low, with selling prices recording a general decrease of 3% - 8% compared to the end of 2022, mostly in projects that are in the process of completing legal procedures and are behind schedule in construction.
Many investors offer many "huge" incentive policies before Tet to promote liquidity.
In fact, in recent times in Ho Chi Minh City, many investors have implemented many preferential policies for home buyers with unprecedented discounts and promotions. For example, at an apartment project in Binh Chanh (Ho Chi Minh City), the investor is implementing a new selling price in the current phase of 46 million VND/m2, a decrease of 4 million VND compared to the opening sale in June. At the same time, this investor also applies a fixed interest rate policy of 6% for the first 2 years and extends the payment schedule.
In the eastern part of Ho Chi Minh City, a component project located in the urban area is also being offered a huge incentive program by the investor with 0% interest support for 3 years with 70% of the contract value. In addition, home buyers will also receive an interior support package of up to more than 300 million VND and 5 years of management fees. In addition, home buyers for rental investment are also committed to a rental fee of 25 million VND/month for 2 years.
In addition to the above-mentioned great incentives, the Ho Chi Minh City market also recorded many other sales programs and policies maintained since the frozen market period with discounts of over 10% for customers paying in full, principal grace period, interest rate incentives, etc. These policies are one of the strategies to heat up the market, which is inherently lacking in supply to meet the actual needs in Ho Chi Minh City.
Similarly in the Binh Duong market, an apartment project in Thu Dau Mot City is also offering a special incentive policy of “0 VND deposit, 0% interest rate, 10% payment to move in immediately”. This policy has created an opportunity for young customers to easily own a house without having to endure much financial pressure in the short term.
Also in this market, a project in Di An City has offered a preferential discount policy of up to 11% for customers who pay in full, customers only need to prepare 180 million VND in advance to own a 2-bedroom apartment. In addition, the investor of this project also committed to renting back at 10 million VND/2-bedroom apartment in the first 2 years.
Binh Duong market recorded stable liquidity thanks to preferential policies and affordable prices.
Looking at the race for incentives at the end of the year, many experts believe that this is a mandatory solution to adapt to the market situation. Especially at the end of the year, many investors must introduce policies to compete for customers who want to buy houses. Policies such as 0% interest rate and extended payment schedule are essential policies when commercial banks only apply preferential interest rates for the past 1 year.
According to Ms. Trang Bui, General Director of Cushman & Wakefield Vietnam, many investors are regulating and launching attractive sales discount policies. When real estate liquidity is good, it is difficult to have favorable policies for buyers like now. Therefore, if you buy a real estate, this is the best time. It is forecasted that after the second quarter of 2024, when the apartment market recovers, the current sales policies of investors will no longer appear.
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