Why does Zenity project discount up to 40% of apartment value?

The Zenity project of investor Capitaland (Singapore) includes a 21-storey tower with only 198 apartments, officially opened for sale at the end of 2022 with a price of about 120 million VND/ ^m2 . After that, this price was pushed up to about 150 - 160 million VND/ ^m2 . Up to now, when there are only 28 apartments left, the investor has launched a huge discount policy, up to 40% of the apartment value. Accordingly, an apartment with an area of ​​about ^95m2 costs about 15.5 billion VND (excluding VAT, apartment maintenance fee), but now it is about 9.3 billion VND. The investor said that the above price includes full high-class furniture such as TV, bed, kitchen... Buyers only need to bring their suitcases to move in or can exploit it for rent immediately.

According to real estate experts, the Zenity project's huge price reduction does not represent the entire market. Because this is the last sale and the number of apartments is also very small. Not to mention that the previous sales have increased sharply, from 120 million VND/ ^m2 to 160 million VND/ ^m2 . Compared to the initial price and the requirement to pay 100% of the apartment value, this discount is actually not large.

Zenity project huge discount

In fact, although the real estate market has been sluggish recently, only a few projects have offered huge discounts. If there are any, customers have to pay up to 95 - 98% of the property value. There have even been periods when the market has frozen but prices have still increased.

Mr. Doan Thanh Ngoc, General Director of Property X Real Estate Company, explained that the price increase is due to the sharp increase in input costs such as land prices, construction costs and especially capital costs. Previously, it took 1-2 years to complete legal procedures for a project, but now a project lasts 3-5 years, so the financial cost is very high.

"At this time, it is very rare to create a clean land fund and get legal documents for a project. Investors do not dare to sell at low prices when land use fees are still a big unknown. Because many projects are sold and then the business goes bankrupt because after the land use fees increase, the revenue of the whole project is not enough to pay. This situation is happening with many projects that were sold before. Currently, the authorities require additional land use fees to be paid at a very high new price, higher than the revenue compared to the previous sale time" - Mr. Thanh said.

According to Mr. Doan Thanh Ngoc, whether the market is frozen or not, investors are forced to sell at cost price and cannot sell at a loss any longer. In this difficult time, most investors have reduced their profit margin almost completely in the hope of selling their products and recovering their capital soon.

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