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Friday, May 24, 2013

Million dollar coastal apartments face difficulties in finding customers

People have spent billions of VND to buy luxury coastal apartments as investments. However, they are struggling to find customers.
Mrs. Bui Phuong Tam, director of a garment and textile company in HCM City, said after careful consideration, she had decided not to buy an apartment of this kind despite putting down a deposit.
She added that spending nearly VND20 billion (USD1 million) to buy an apartment seemed a waste, while it wasn’t easy to sell it to earn profit amid economic difficulties.
According to a real estate consultancy, the total number of apartments of this kind had topped 2,400. CBRE Vietnam said the local market would receive an additional 10,000 in the next ten years.
However, investors are finding it really difficult to attract customers despite offering various promotions.
A 100-square metre luxury apartment located in a coastal area often costs between USD200,000 and USD300,000, with most of the projects remaining uncompleted.
Customers have begun to recognise the sales tricks employed to raise the prices of luxury apartments, and remain sceptical about the value of so-called million dollar housing.
Investors often said that their luxury apartment projects had been sold, but they rarely revealed any information about their customers. Many projects have been sold just on paper, however, in fact, the transactions have not yet been made.

Nguyen Hoang Nam, Director of Infor property transaction office said luxury apartments in tourism areas are often for investors, and were not essential product. He added that in Vietnam, the southern central region had the most suitable climate for tourism development and was home to nice beaches such as Nha Trang, Mui Ne and Vung Tau, offering good conditions for the development of these kinds of apartments.
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