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Competition grips real estate market

Update: March, 15/2014 - 10:25
The real estate crisis has increased competitiveness and brought more choice for clients in Viet Nam.— Photo

HCM City (VNS)— The real estate crisis has eliminated weak investors, increased competitiveness and brought more choice for clients.

Unlike in the past, where buyers would buy on spec, buyers can now expect completed building work, as well as the proper legal documentation. Now, land purchase and transfers are handled by experienced financial investors, especially for projects that have reached a standstill.

The 557 investment joint-stock company is to buy an apartment project in district 9, HCM City that has been at standstill for the past five years.

"Many investors have mortgaged their land-right certificates to borrow money for construction. But most of them have not been able to finish the project as their funds ran out. They can't finish the project, they can't sell it as it has not been completed, and all the while they must still pay interest," Than Qui Phai, general director of the 557 investment joint stock company told the Sai Gon Giai Phong (Liberated Sai Gon) newspaper.

The HCM City Infrastructure Investment Joint stock company (CII) will also buy shares of several partners in different real estate projects this year to help move the projects forward.

"When a project faces financial difficulties, the investors must transfer or co-operate with other companies or else eliminate themselves from the market," Le Quoc Binh, general director of the (CII) said.

"The market needs more and more buoyant companies with good, solid projects," said Le Chi Hieu, chairman of the Thu Duc House's management board.

The Sai Gon Thuong Tin Real Estate company (Sacomreal) has recently announced that they are to sell the Arista Vills residential projects in Thu Duc district. All infrastructure, such as the swimming pool, tennis court and children's playground has now been completed. Clients only need to pay 20 per cent of value of the property and can pay the rest over the next 24 months.

"In the context of the frozen real estate market, we must convince our customers. We must prepare all the necessary infrastructure and encourage them to build houses immediately after buying land," Bui Tien Thang, deputy general director of the Sacomreal said.

An entertainment area with children's play battleground, swimming pool, rowing facilities, and restaurants has been built in the BCR project, invested in by House Viet Nam Joint Stock company to lure buyers.

For Tan Phu district's Au Co Tower, the investors have started granting apartment certification for all customers despite the fact that they haven't sold all apartments.

The Tac Dat Tac Vang company has invested in projects in new Binh Duong City. A night market was built by the company to make it more convenient for local residents.

Completed projects with good local conveniences, good sales policies and granted legal certificates will attract customers, a representative of HCM City's Real Estate Association said. — VNS

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