Real estate businesses have recently complained that they are going bankrupt massively, suffering from heavy losses and others. However, according to construction vice deputy minister Nguyen Tran Nam, people should not worry for real estate investors because they are still earning big profits.
At the end of May, chair of the HCM City Real Estate Association (HOREA) Le Hoang Quan suggested that real estate businesses should be allowed to raise capital before foundation is built. Members of HOREA have also asked for help from the government and many businesses have complained that they are seriously short of capital and running a loss.
Real estate businesses said that because of the frozen market, they could not sell products and they could not borrow capital from banks, they were falling into a gloomy situation.
However, in fact, right by this time, many businesses have still launched many new projects, which are welcomed by the market.
Namely, the Nam Long Co has sold nearly all apartments at the An Vien Building at prices of 16.5 million dong a square metre. The Kien An Co has introduced Blooming Park Apartment at price of US$1,700 a square metre or higher. Cityland has offered its apartment in Vung Tau City at price of US$1,550 a square metre or higher, Sacomreal is also selling a series of projects and so on.
Many projects are still offered at prices higher than initial prices set by investors. Currently, prices of expensive projects in HCM City including Saigonpearl, The Manor, Phu My Hung, Hung Vuong, Everich, Salling Tower are still nearly doubled initial prices of US$2,500-5,000 a square metres of higher.
As for projects of Hoang anh-Gia Lai Co, the Vistar, Estala, Sunrise City and so on, although investors have offered initial prices of US$2,000 a square metre or higher, real prices remain higher than the initial prices.
Tran Hung Minh, vice director of the Minh Nam Real Estate Co confirmed that with price of 15 million dong a square metre or higher, no business suffers from losses although prices of materials, interest rates further increase because all costs are less than 12 million dong a square metre.
Nam said that real estate businesses are entitled to less profit than previously and their profits remain big.
Since the start of this year, although many domestic businesses have complained about the gloomy real estate market, the number of foreign real estate investors has still strongly grown. Many big projects have been licensed such as Ho Tram Tourism Complex worth US$4.2 billion in Ba Ria-Vung Tau province invested by Canadian Asian Coast Development Group, a five-star hotel, recreation project of the US Good Choice with total investment of US$1.299 billion,
Starbay Holding Ltd B.V.Island has invested US$1.648 billion, such big organisations as Capital Land, Vincom, VinaCapital and other continued developing multi million US dollar projects in Vietnam. This has demonstrated that the market still presents great potentials and further strong development in the upcoming years.
A director of a foreign investment fund said that if Vietnam’s real estate market is not attractive, no investor dare to spend billions of US dollars investing here.