Ho Chi Minh City property sector warms up

Ho Chi Minh City’s real estate market is showing signs of recovering, with many apartment building projects reporting more interest from buyers. Real estate agents say buyers seemed to have returned to the market because property prices had fallen from last year’s highs, bank loans had become easier to access and more flexible forms of payment were on offer. Last year was volatile for HCMC’s property market. After a booming 2007, real estate was hot at the start of 2008 but cooled rapidly during the year as inflation and interest rates skyrocketed. On Monday, sales staff at Hoang Anh Gia Lai real estate transaction center were taken by surprise when hundreds of customers registered to purchase apartments in the Hoang Anh River View and Phu Hoang Anh projects. Hoang Anh Housing Development Company released 300 apartments in the as-yet-uncompleted Hoang Anh River View development for sale for US$1,350 per square meter, 45 percent less than originally planned. The company also launched special deals to lure prospective purchasers, including a 5 percent discount for the first 50 customers. Under the promotion, buyers of Hoang Anh River View apartments were only required to lodge a deposit of VND100 million (US$5,714). “Just look at the number of customers,” said Hoang Anh Housing Development Company director Le Hung. “Most of them really wanted to buy (finished) apartments, not just pay a deposit. I think the market for luxury apartments is promising.” Many luxury apartment block developers have reduced selling prices to recover some of their outlay. The current low interest rate environment may also help stimulate HCMC’s property market. “Low interest rates on saving accounts will make many people buy apartments to rent out, because they don’t want their money lying idle,” Phuc Duc Real Estate Company director Lam Van Phuc said. Deputy Director of Saigon Thuong Tin Real Estate Joint Stock Company (Sacomreal) Bui Tien Thang said the real estate market may recover sooner than predicted - from the third quarter of this year. Thang said the company’s Orient Apartment project received deposits from six customers on Monday alone. Thu Duc House property transaction center director Huu Son said his company was “selecting” buyers from the 1,000 hopefuls who registered to buy 260 apartments in the Truong Tho project in Thu Duc District. Property developers have also been heartened by the sale of 133 apartments in the District 2 development, Riverside Residence, by Phu My Hung Joint Venture Company for VND35 million ($2,000) a square meter earlier this year. sources from vietnewsonline.vn