Property firms return to market after Covid-19

HCM CITY — After a brief hiatus, property companies have been resuming sales of developments and revealing their post-COVID- 一 九 business plans since the beginning of May.

Ministry of Construction data shows that some  八0 per cent of developers stopped sales or even temporarily halted operations during the first quarter while the rest had modest operations going.

Transactions slumped to  四0 per cent of the level seen in the same period of  二0 一 九. Only  一 四 per cent 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, Việt Nam's largest private firm by market value, opened sales of S 一.0 八 apartment tower at Vinhomes Ocean Park in Hà Nội’s Gia Lâm District.

For the first time a real estate sales event included livestreaming and online transactions.

In just over an hour nearly  二 五0 apartments, or  五0 per cent of the total number of units on offer, were sold.

The Novaland Group began the sale of Aqua City in Đồng Nai Province’s Biên Hòa City. The  一, 八00ha project, mainly comprised of villas, is thought to be the largest property project in the province.

Hưng Thịnh Corp plans to begin sale of its  九 六ha project in Bình Dương Province’s Dĩ An City in the third quarter.

It will have  三,000 housing,  一 二 officetel and  五 三 shophouse units.

According to experts, the real estate market is set to undergo a rejuvenation process as a result of the Covid- 一 九 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.

Trần Lê Thanh Hiển, chairman of Danh Việt 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  五,000ha of land with a portfolio of more than  四0 real estate projects in HCM City and neighbouring provinces over the next few years.

Nguyễn Văn Hậu, 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. — VNS