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Property firms return to market after COVID-19
VietNamPlus - 6/10/2020 11:19:15 AM
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After a brief hiatus, property companies have been resuming sales of developments and revealing their post-COVID-19 business plans since the beginning of May.
 
Ministry of Construction data shows that some 80 percent of developers stopped sales or even temporarily halted operations during the first quarter while the rest had modest operations going.
 
Transactions slumped to 40 percent of the level seen in the same period of 2019. Only 14 percent of products entering the market during the quarter were sold, the lowest level in four years.
 
But the industry is now gearing to tap opportunities during the post-pandemic recovery, which is expected soon.                  
 
In early May, Vinhomes Company, a subsidiary of VinGroup, Vietnam's largest private firm by market value, opened sales of S1.08 apartment tower at Vinhomes Ocean Park in Hanoi’s Gia Lam district.
 
For the first time a real estate sales event included livestreaming and online transactions.
 
In just over an hour nearly 250 apartments, or 50 percent of the total number of units on offer, were sold.
 
The Novaland Group began the sale of Aqua City in Dong Nai province’s Bien Hoa city. The 1,800ha project, mainly comprised of villas, is thought to be the largest property project in the province.
 
The Hung Thinh Corp plans to begin sale of its 96ha project in Binh Duong province’s Di An city in the third quarter.
 
It will have 3,000 housing, 12 officetel and 53 shophouse units.
 
According to experts, the real estate market is set to undergo a rejuvenation process as a result of the Covid-19 pandemic and awaits a new growth cycle.
 
It would be a difficult time for weak companies, but for those with deep pockets and professionalism, the pandemic would only pose short-term problems but could end up creating new opportunities, they said.
 
Tran Le Thanh Hien, chairman of the Danh Viet Group, said the difficulties of the real estate market are temporary and in the long term has significant potential for development.
 
It is time for property companies to expand their land ownership, especially those with strong finances.
 
Novaland Group now has 5,000ha of land with a portfolio of more than 40 real estate projects in HCM City and neighbouring provinces over the next few years.
 
Nguyen Van Hau, general director of Asian Holding, said property firms must improve their resilience and flexibility to cope with market shocks.
 
Although there are difficulties, the market shows positive signs, he said.
 
Experts said if the disease situation remains under control, the market would become active again in the last two quarters with the introduction of large new projects and diverse products that meet customers’ needs./.
VNA
 
Read original article here
 
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