Vietnamnet.vn
Podcast
VietNamNet Bridge – While real estate developers have unceasingly called for
help, some economists say it would be better to turn a deaf ears on the
complaints, believing that the real estate developers are still “living well”.
Do real estate developers actually take loss?
 |
|
|
The expert said that while real estate developers complain about losses, they remain very “picky” and they do not intend to “collect small changes”. Most of the real estate developers have decided to “sit idle” now to wait for their opportunities to come, rather than trying to sell apartments at low prices for modest profits. They would not be foolish enough to borrow money from banks at high interest rates and have to share their profits with banks.
A lot of workshops and conferences have been organized recently, where real estate firms complained that they are incurring big losses, blaming this on the government’s tightened monetary policies.
Lao dong has quoted Le Hoang Chau, Chair of the HCM City Real Estate as saying that real estate firms have never before met such big difficulties. He said that the biggest problem for the firms now is the incapability to access bank loans.
“The real estate sector does not have capital, which is like a body which does not have blood,” he said.
Nguyen Van Duc, Director of the HCM City-based Dat Lanh Real Estate Company said: “The real estate sector has fallen sick for a long time, while there has been no cure. It is stretching out on the deathbed”.
According to Duc, in HCM City, more than 60,000 apartments priced at over one billion dong for each have been left unsold, while the market is lacking the apartments worth less than 500 million dong.
“The paradox exists now is that while many products remain redundant, other products are still lacking,” he said.
However, according to Phap luat Vietnam, though Duc said his firm is facing big difficulties, his office remains very bustling with a lot of calls made to ask for information, and, contrary to the complaints by the general director; transactions still have been made regularly.
The director of the Dat Lanh Company has called on the government to take actions to rescue the real estate market, or it will be too late. He believes that the state should allow to develop the apartments with the area of 30 and 40 square meters worth 500-700 million dong for low income earners.
Nevertheless, the suggestion has been facing strong opposition from many experts. They said that building small apartments means coming contrary to the policy on heightening the living standards, and that such departments would cause a lot of consequences.
They have also raised the doubts that if the real estate developers build small apartments at such high prices to overcharge consumers.
Big profits still falling into developers’ pockets
Opinions from well informed circle said that while many economic branches are facing big difficulties, the real estate sector is still making fat profits. The real estate prices remain sky high, especially high end apartments. As for medium class apartments, though the prices have dropped significantly, real estate developers still can make fat profits
Experts have pointed out that real estate developers just need to spend 8-10 million dong on a square meter of medium class apartments, while the current sale prices are hovering around 12-18 million dong per square meter.
According to Phap luat Vietnam, a lot of real estate developers in HCM City now spend their time on playing golf, traveling or relaxing, while waiting for the big opportunities to come. Their financial capability is more than enough to allow them to “hibernate” for several years.
Phap Luat
.svg){kind=icon}
