In order for developers to stay afloat in these rough economic times, they are being strongly advised to not only lower home prices, but also utilise cooperative measures with competing companies.
According to Le Chi Hieu, vice chairman of the Ho Chi Minh City Real Estate Association, says that property developers will not only have to change their business strategies and tactics, but also for long term survival, real estate developers should become less dependant on banks for funding and seek investment from a multitude of capital sources.
In addition to the general consensus of developers overall need to accept lower prices and even losses, Nguyen Van Duc, deputy director of Ho Chi Minh City-based Dat Lanh Real Estate Company, said that developers should also review their financial plan of action and lower construct costs.
According to Vietnamnet, despite the home prices decline in 2011, the drawbacks were unable to seduce homebuyers to invest in the market. Vietnamnet also said that the miniscul price cuts were marketing ploys. It also reported that in Hanoi, in the first three quarters, only 3,600 real estate transactions occurred.
Chairman of GP Invest, Nguyen Quoc Hiep, said despite there being no official announcements as of yet, a plethora of real estate companies are already filing for bankruptcy. Hiep also said that due to a decline in sales and bank loans piling up, the companies were unable to successfully stay in the market.
Trinh Dinh Dung, construction minister, predicts that the market could be sluggish in the first half of the year. The light at the end of the tunnel for market growth and improvement appears to be in the low-income housing segment in 2012.
by Property Report
According to Le Chi Hieu, vice chairman of the Ho Chi Minh City Real Estate Association, says that property developers will not only have to change their business strategies and tactics, but also for long term survival, real estate developers should become less dependant on banks for funding and seek investment from a multitude of capital sources.
In addition to the general consensus of developers overall need to accept lower prices and even losses, Nguyen Van Duc, deputy director of Ho Chi Minh City-based Dat Lanh Real Estate Company, said that developers should also review their financial plan of action and lower construct costs.
According to Vietnamnet, despite the home prices decline in 2011, the drawbacks were unable to seduce homebuyers to invest in the market. Vietnamnet also said that the miniscul price cuts were marketing ploys. It also reported that in Hanoi, in the first three quarters, only 3,600 real estate transactions occurred.
Chairman of GP Invest, Nguyen Quoc Hiep, said despite there being no official announcements as of yet, a plethora of real estate companies are already filing for bankruptcy. Hiep also said that due to a decline in sales and bank loans piling up, the companies were unable to successfully stay in the market.
Trinh Dinh Dung, construction minister, predicts that the market could be sluggish in the first half of the year. The light at the end of the tunnel for market growth and improvement appears to be in the low-income housing segment in 2012.
by Property Report
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