After keeping prices for a long time, many investors in Hanoi were forced to lower prices to continue projects, the local newswire VnMedia said.
From early 2012 so far, to stimulate demand, project investors have continued to offer new price reduction forms such as promotions, gifts, discounts, interest rate subsidisation and reducing the furniture price of apartments.
For example, not long ago, Golden Palace project in Me Tri, Tu Liem, Hanoi, reduced price by nearly 400 million dong/unit for customers. The prices slipped to about 30-33 million dong/m2 with perfect interior package and about 27-29 million dong/m2 for apartment without furniture.
Golden Land project in Nguyen Trai Street also launched a promotion whereby home buyers will be given a car worth 650 million dong. If customer do not receive car, the price of apartment will be lower. Thus, the price of condominium decreased to over 30 million dong/m2.
Thus, by direct or indirect methods, new promotion forms of investors have contributed to lowering the condominium price in Hanoi to a new level. Of which, at projects in Hanoi’s inner districts, the prices are ranging around 30-35 million dong/m2.
According to survey of VnMedia, in districts of Dong Da and Ba Dinh, the condominium prices are now ranging around 35-45 million dong/m2 threshold. Apartment project at No 170 De La Thanh, Dong Da district, has price of 34-38 million dong/m2, Lacater condominium project in Nui Truc Street, has prices of 40-42 million dong/m2, condominium project at No 65 Thai Ha has price of 40-42 million dong/m2 and euro Windown apartment project in Tran Huy Hung Street has price of above 40 million dong/m2.
In districts of Tu Liem and Cau Giay, the condominium prices are hovering around 30-35 million dong/m2. Green Park apartment project has price of 32-34 million dong/m2, Keangnam apartment project at 44-45 million dong/m2, The Manor apartment project at 45 million dong/m2 and Golden Palace Me Tri apartment project at approximately 30 million dong/m2.
In Ha Dong district, the condominium prices are lower at about 20-25 million dong/m2 such as Van Phu apartment project (18-20 million dong/m2) and City View apartment project in Nguyen Trai Street (about 25 million dong/m2).
Many sources said that the current gloomy situation of condominium market is not only due to the difference in supply and demand but also because buyers lost trust in this segment.
The main reason stems from the investors who lack financial capacity but commit a breach of trust with clients. These investors raised capital but not deployed the projects and used low-quality materials, affecting the project.
In the current context, investors with strong financial capacity will be able to survive and maintain operations.