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Developers focus on lower-cost housing
Property developers remain optimistic and are focusing on the medium – and low-cost housing segments though demand has yet to recover from a prolonged slump.
Hugo Slade, Deputy Director of market research company Viet Nam Cushman & Wakefield, said so far this year, 46 development projects with 8,550 apartments costing an average of VND15.5 million per square metre came into the market.
Developers continued to launch their products despite low demand caused by high interest rates and tortuous loan procedures for buying houses, he added.
According to the director of a property company who wished to remain unnamed, since the market has been dull for two years, most developers have run out of money.
Among those are Happy Plaza in Binh Chanh District which consists of 600 apartments priced at VND12.5 million-13.5 million per square metre and with an average size of 60sq.m.
Thu Duc Housing Development Joint Stock Company is confident that the medium-priced apartment segment will continue to do well for at least the next 10 years and has begun the Truong Tho apartment project at an average price of VND15.5 million per square metre.
It has sold all 120 units in the first phase and kicked off sale for the second phase on September 24.
Van Phat Hung Joint Stock Co plans to initially offer 110 apartments in its La Casa tower in District 7. It is building a total of 2,000 units there.
Foreign property developers have begun to show interest in the medium-priced segment unlike earlier when they were completely focused on the luxury segment.
An executive at Singapore-owned CapitaLand Co said the company will start building apartments costing less than VND20 million per square metre.
He did not mention a time frame but said it was to diversify the firm's offerings in the Vietnamese market.
Small apartments priced at VND400 million-VND800 million are the most in demand, property brokers said, adding 80 per cent of successful housing transactions are in the medium – and low-cost segment.
vietnamnews
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