Banks have continued restricting loans to the property market, forcing lots of real estate investors to turn to other businesses.
Post-Tet real estate market remains gloomy
Ms. Lan Anh, Director of HT property trading centre in Trung Kinh Street, said, “We did no transactions in the month before Tet, so we are having to close two weeks earlier than scheduled. We hope to resume operations in lunar February.”
The company had to reduce its staff to three from a previous five. It still owes salaries to the staff due to a lack of cash flows. Last year, the firm only sold a few apartments, and only received a modest commission, so, it did not offer any Tet bonus, she said.
“If the market sees no improvements this year, I plan to close the company in the middle of this year,” the director added.
Le Van Luong Street is the centre of property transaction centres, however, many of them have yet to remain in operation.
Thinh Vuong real estate exchange centre has just closed and been turned into a fashion shop.
On the two floors of the five-floor building where the Tin Phat property centre is located, staff member Nguyen Tai said that if the centre continued to remain so quiet the remaining floors will be leased.
Nguyen Phat Dat, Chairman of Phat Dat Company, said his firm would shift to investing in agriculture investment. In 2012, the company intends to invest in rubber plantations in Laos, Cambodia and Myanmar, instead of property business.
Giving more care to customers
Vu Cuong Quyet, General director of the Northern Dat Xanh JSC, a member of the Dat Xanh Group, said customers were more demanding, noting that, “More than one year ago, only customers who have good relationships could buy our apartments, but now, we have to invite them.”
According to him, to attract customers, the company will offer a 2% discount or a VND20-million (USD952.3) discount on Tan Tay Do project. VND30 million discounts were also given to people who wanted to buy apartments at the Dream Town project during Tet.
No change
Phan Thanh Mai, General Secretary of Vietnam Real Estate Association, said, if the State Bank of Vietnam loosens loans for property projects, the market would be expected to see improvements in the third or the fourth quarter of 2012.
According to Dang Hung Vo, Former Deputy Minister of Natural Resources and Environment, this year will continue witnessing massive price reductions in real estate projects. However, despite much lower prices, buying houses will still remain out of the reach of many low-income earners.
