Vietnam developers offer deferred principal payments, interest support to boost year-end sales

Vietnamese housing developers are offering several incentives including deferred principal payments and interest support to stimulate demand and boost liquidity as the year nears its end.

One of them is Vinhomes, which officially launched two towers, OS1 and OS5, at The Opus One complex on Saturday.

The complex, located at the Vinhomes Grand Park urban area in Thu Duc city, Ho Chi Minh City, includes four 32-34 storied residential towers on a 2.3-hectare site.

It is offering apartments priced at VND83 million ($3,266) per square meter and above.

Despite the high price tag, the developer reported that more than 500 units were booked within the first 24 hours, signaling strong initial interest.

Vinhomes said it was offering attractive financing options including payments in up to 16 installments and interest rate support of up to 70% with principal payments deferred by up to 30 months.

Similarly, Eaton Park, another project in Thu Duc city launched by Malaysian developer Gamuda Land in October, is offering flexible payment options for apartments priced at VND142 million ($5,590) and above per sqm.

The options include apartment delivery upon 30% payment and 7% interest rate support through to 2029.

Meanwhile, Masteri Grand View by Masterise Homes attracted attention with more than 2,000 bookings within a short period for apartments with starting prices of VND100 million ($3,936) per sqm. The complex is part of the 117.4-hectare The Global City urban area, which offers 600 luxury units.

Other projects including TT Avio by TT Capital and Phu Dong Sky One by Phu Dong Group, both in Binh Duong province; Tan Tru Royal in Long An province; and Destino Centro in HCMC are also offering financing options including low down payments and interest support.

Unmatched expectations

However, most developers have reported that despite the attractive offers, actual sales have not met expectations, signalling weak market liquidity.

Nguyen Tung, CEO of a real estate company in HCMC, said that despite extensive advertising and grand launches, sales have remain slow for many projects.

While some projects by reputable developers have seen better liquidity, the overall market was still facing challenges. Tung said the high prices of new developments are unaffordable for a majority of the people.

The affordable housing segment is mainly concentrated in provincial markets like Binh Duong, he noted, adding that consumer confidence has yet to recover significantly.

Hopeful signs

Real estate expert Nguyen Hoang said the southern real estate market is showing more positive signs compared to the recent past, although it hads not fully met expectations.

“This optimism is reflected in the increased supply of new projects, mainly in HCMC and Binh Duong,” he said.

He noted that eight projects in HCMC have had their legal obstacles cleared, paving the way for other projects to do the same, potentially improving liquidity in the coming months.

In addition, the secondary market in HCMC is seeing more transactions, with prices increasing significantly since Q2.

Besides this, it has been projected that by the end of the year, 20,000 to 25,000 new units could be launched in HCMC and surrounding areas.

Hoang said current interest rates are similar to pre-Covid levels, which is another factor helping boost market activity.

However, while the residential housing segment shows signs of improvement, the hospitality real estate is still facing difficulties and has not seen significant progress, he said.