Sales during lunar July reflect changing attitudes among homebuyers
In years gone by the “ghost month” (lunar July, solar August this year) has more often than not seen local investors, especially real estate investors, become reluctant to purchase or invest in new projects. The positive development in liquidity during this year’s ghost month, however, has pleased many investors.
One of the main reasons for the positive signs in the property market during the ghost month is the change in thinking among many homebuyers. They now believe new projects with good infrastructure is the most important factor rather than focusing on spiritual matters. They also see that they may lose out if they don’t make a decision quickly.
Many investors therefore continued with project sales during the ghost month and homebuyers seemed less afraid to buy a house during a month that has traditionally seen few sales.
Lucky ghost month
Since the beginning of the ghost month a number of real estate investors in Hanoi announced they would conduct sales or begin new projects. The Dat Xanh Mien Bac Real Estate and Services Joint Stock Company was probably the company to reap the most success during the ghost month, opening sales of remaining houses in its Park Hill projects. Mr. Vu Cuong Quyet, General Director of Dat Xanh Mien Bac, said that during the ghost month in the last two years the company has seen its business results exceed expectations.
On September 12 (the last day of the ghost month), many projects opened sales and all investors were satisfied with the results. For example, the BIM Group opened sales at its Lotus Residences project, Vingroup opened sales at Vincom Shophouse Hai Phong, and Dat Xanh Mien Bac held sales at its CT1A-CT1B apartment project in Hoang Quoc Viet, Hanoi.
In the south, many businesses also announced good results during the ghost month. The Saigon Thuong Tin Real Estate JSC (Sacomreal), after selling 216 villas at Jamona Home Resort during the month, now plans to open sales for 200 apartments in the project’s second phase this month.
According to Mr. Quyet, the solid sales during the ghost month were due to a change in spiritual concepts among homebuyers. "Other major purchases, such as motor cars and motorcycles, also saw pretty good sales,” he said. “Of course, the product must be good and the sales policy must be reasonable.”
Projects opening for sale during the ghost month made many concerned that, after a period of rising prices and increasing liquidity, investment opportunities would be less. However, Mr. Nguyen Tran Nam, Chairman of the Vietnam Real Estate Association (VNREA), said that housing demand is still growing strongly. Opportunities remain for businesses to benefit when they understand the market and have sufficient capital.
In talking about the risk of creating a fake fever in the real estate market, General Secretary of the VNREA Tran Ngoc Quang said he believes it won’t be easy to create such a fever in property because both buyers and sellers are now more "cautious" than before.
However, the possibility that the market may see higher prices and greater liquidity over the remaining months of this year and early 2016 due to ongoing demand is still large, he said.