To compete, real estate developers are offering numerous promotions and attempting to provide reasonable prices in order to shift units. Hundreds of customers have been queuing since 1am to buy apartments. This is the second sale of the West Bay at Hanoi’s Ecopark development. The scenes are reminiscent of 2006-2007 when the real estate market experienced a bubble. However, unlike in 2007 when most purchases were by speculators, it seems most buyers are actually looking for a home. In this particular case the project has proved popular thanks to its cheap price.
"The environment here is fresh and comfortable to live in. The apartments are equipped with many convenient interior facilities and have reasonable prices, therefore, I’m interested in this project" - said Nguyen Thu Huong, Hai Ba Trung District, Hanoi.
Over the first quarter, 20 thousand units were opened for sale in Hanoi and Ho Chi Minh City, with 18 thousand units sold. Several projects have seen 90% sales rates following their launch.
"I think each project investor has their long term goal. They’re no longer chasing small market segments, but instead looking at real demand" - said Nguyen Duc Minh, Deputy General Director of Viet Hung Urban Development & Investment JSC.
However, with the upward trend in supply, several projects will be affected by slower sales. Therefore, market participants including project developers, investors, banks, and government agencies need to be careful for their decision.
"Now the most important thing is to maintain is price. We need a proper management strategy to prevent unexpected rises in prices" - said Nguyen The Diep, Vice Chairman of Hanoi Real Estate Club.
As of now, real estate ranks second in terms of FDI attraction with total registered capital of 240 million USD. Apartments priced around 1 billion VND or 45 thousand USD are predicted to account for a sizeable proportion of real estate market, serving real market demand.
