|17:00' 06/06/2008 (GMT+7)|
VietNamNet Bridge – Real estate developers are all complaining that they have been falling into a very bad situation, and that many of them are on the verge of bankruptcy. However, in fact, they are still making fat profit.
However, in fact, the investors are still launching apartments onto the market and their apartments are still selling well.
Nam Long Company, for example, has sold nearly all the apartments of An Vien project at VND16.5mil/sq m. Kien A Company has just marketed Blooming Park apartments in district 2 in HCM City at $1,700/sq m. Cityland is offering apartments in Vung Tau city at $1,550/sq m, while Sacomreal is also selling their products.
It is true that the real estate market is sliding, but prices have only been decreasing compared to the peak prices: they are still higher than the original prices set by investors. Luxury apartments in
Tran Hung Minh, Deputy Director of Minh Nam Real Estate Company, affirmed that no real estate firm could suffer a loss if it could sell space at VND15mil/sq m, despite the construction material price increases. Minh said that with the current construction prices, investors have to spend VND12mil at maximum for every sq m of construction.
Deputy Minister of Construction Nguyen Tran
In fact, a lot of investors are still injecting money in new real estate projects. If they were losing money on current projects, they wouldn’t be spending money on new projects.
Most construction works are still under construction despite skyrocketing material prices. V-con Tan Truong, the investor of V-Star in district 7,
Nam Long Company is also going to launch a lot of new products, and said that products with reasonable prices are still selling well.
Don’t complain, opportunities still exist
While domestic enterprises complain that the domestic market is gloomy, foreign investors are still jumping into the market. A lot of projects have been licenced, including the $4.2bil Ho Tram Tourism Complex in Ba Ria-Vung Tau province invested in by
The director of a foreign investment fund said that if
“Don’t complain. The real estate market still promises a lot of opportunities and investors can get big money from it,” he said.