Developers boosting sluggish apartment sales

Struggling with poor sales, a number of property developers have launched programs in which their customers can choose to pay by installment.

What property firms did in the old days was to name the banks that were providing home loans accounting for up to 70% of the value of an apartment. However, this practice is not working at the moment since extremely high interest rates prevent home buyers from taking out a bank loan.

Certain developers now allow home buyers to make a down payment equivalent to 50% of the value of an apartment and pay the rest by installment with a preferential interest rate or even have the payment term rescheduled if needed. They said they are willing to arrange loans for home buyers at interest rates lower than those at banks.

Le Thanh Co. is keeping a close watch on market movements as it is preparing to put up for sale 100 apartments in Le Thanh Twin Tower project in Binh Tan District. The project consists of 350 units worth VND1 billion each or VND14 million per square meter.

To attract buyers, the company lets them take delivery of apartments after a 50% down payment is made while the remainder will be paid over a period of five years at a fixed monthly interest rate of 1%.

Flats in Quang Thai Apartment in Tan Phu District developed by Hoang Anh Sai Gon Real Estate Co. are on sale at VND13.5 million per square meter. Half of the apartment’s value will be paid shortly before the handover of the home and the rest will be paid over two years without an interest rate.

This sales strategy not only helps investors ride out tough times but also supports home buyers overcome financial constraints.

Other realty developers that will take part in a property fair organized by Eden Real Co. in HCMC from March 21 to 26 said some 20 condo projects across the city would be put on sale by installment plan.

If house prices were high, buyers could hardly have the opportunity to own a home. Property developers are starting to adjust down their selling prices to levels that should be, said Huynh Kim Doan, director of Eden Real. - Source: The Saigon Times