RARITY MAKES PRODUCTS “HOT”
(VEF.VN) – The good sale of Cat Ba seaside resort villas and apartments priced under VND 1.5 billion in circumstance, when real estate market is down proved that making the difference could lead to success.

Recently, VINACONEX - ITC entered cooperation with two international real estate advisory firms Knight Frank and CBRE to sell hi-class Fantasia villas of Cat Ba Amatina Project. This Project is one of the few resort projects in Northern Vietnam. In addition to that, it is a project that successfully encourages special attention of international businessmen in current critical economic conditions.
 

VINACONEX-ITC Director General, MA Trần Ngọc Quang, at press conference announcing two international sale agents for its Fantasia hi-class resort villas of Cat Ba Amatina Project.

The Vinaconex-ITC’s acceleration of sale in the darkened market situation seems to be irrational. However, although real estate market is going down, the sale of project’s villas encourages many customers. Previously, in the same year 2011, Vinaconex-ITC organized 2 sale campaigns during which it successfully sold hundreds of villas. This sale campaign also expected to be successful, because it had drawn in special attention of many customers.
 

Customers pay special attention to resort villas and other components of Cat Ba Amatina Project

Meanwhile, Vietnam seems to be flooded with many different hi-class real estate resort projects. Seaside resorts are developed at high density alongside the coast line of the Middle and South of Vietnam. It could be even said that supply of resorts in Vietnam is exceeding demands. But this is not the case of the Cat Ba project.

Addressing this issue, Mr. Richard Leech, CEO of CBRE Vietnam said that potential for tourism development in Cat Ba is very significant. On the world, there are very few places where natural forest, sea and heritage elements all come together like in Cat Ba. This factor makes the Project developed and run by Vinaconex-ITC a magnificent one.
 
Xa La Apartments with apartments priced under VND 1.5 billions still enjoy good sale during the down of real estate market.

And, because development on Cat Ba island is restricted for interest of reservation, supply of spaces for development of resort projects is strictly limited. Therefore, it is very difficult to have any more similar project developed in this area. Those factors all together make the project very “hot” one and also guarantee its success, from long-term perspective.

To look out over the whole northern Vietnam, it may be discovered that although sunny climate is not in place around whole year, the seaside resorts are sold right at their introduction to the market. There are not much resort projects in northern Vietnam and number of attractive projects is even less. However, those projects enjoy very good sale. This is not a case of many projects in other areas of the country, where climate is favorable, but large number of projects at one site makes their sale much slower.

Linking Cat Ba case to several market changes in recent time, we may see that while most of apartment projects in Hanoi are experiencing price reduction and slow sale, smaller number of other projects are still selling very fast. Those latter projects are selling apartments in new urban areas with the price around VND 1.5 billion. Customers are still ready to pay price of VND15-17 millions/m2 although market is going down.
 
In fact, there are only few such reasonably priced apartment projects. They mainly provide rationally designed apartments of 60-80m2 located at Xa La and Duong Noi-Ha Dong new urban areas. Customers of those projects usually are small-size family, newly employed or lower income people. Even when being re-sold at price of VND 20 million, those apartments are still quickly traded because their price is still “within the affordable limit”. Thus, although initially considered as low-end products, these apartments are not becoming “hot” products because they are rare.
 
In reversed scenario, there are plenty much of hi-end apartment projects in urban and sub-urban areas, the sale of which is freezing. Investors have to reduce price and apply promotion, but very few customers are interested. There are many reasons of the situation, one of which is that there are so much similar projects, in other words, although products are good, but because their price is high and their supply is abundant, then their attraction is low.

Acknowledging the existence of such situation, Ministry of Construction proposed that the real estate developers confused themselves by providing a product line that is not suitable to the market. Real estate developers focus on high-end products and at the same time forget average, yet highly-demanded products for the public. Anyway, “hot” or “rare” product is just a market issue. True issue is that each business should choose its own development path to maximize its comparative advantages in competition. Cat Ba villa and Hanoi small apartment successful stories again re-teach us the shortcomings and the lessons of doing business in real estate market.
(Source: http://vef.vn; http://vitc.com.vn)
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