Cheap apartments are considered as the key segment of the real estate market in 2017. In fact, each project is launched ‘fire’ by hitting the giant demand of buyers. However, the thirst for cheap apartments is still low because the owner is not attractive enough.
Must focus on sustainability
Ms. Tran Thi Cam Tu, General Director of Eximrs Real Estate Services Joint Stock Co, said that in the second quarter of 2017, 10.000 apartments were offered for sale, but only 40% are apartments for middle-income customers. That shows that the apartment is affordable (from $65.217), very little in the market in HCMC while the demand in this segment is very large. As evidenced in Ho Chi Minh City, these segmental projects have very high liquidity, when released.
The apartment market in Ho Chi Minh City supplies the projects with prices of over $43,478 but still ensures the criteria for a nice apartment, ensuring the convenience of the outlying area is very little. “Low-profit margins compared with the development of high-end apartments is the reason why investors abandoned cheap apartments, running in the high-end segment leading to the growing phase of supply and demand,” Ms. Tu said.
In addition, the land fund has good location, favorable increasingly scarce, the cost of building materials increased. If the enterprise develops the project in the average price segment, the profit is not high. That is why businesses are not keen on this segment.
According to Ms. Tu, there is only one way to overcome that is the harmony of profit owners, actively meet the real needs although not profitable but towards long-term value, sustainable not only for businesses but also for the market.
For example, the Saigonhomes project, which is distributed by the enterprise, is located in front of Huong Lo 2 road, 40 meters wide, adjacent to the District General Hospital and Ward People’s Committee; next to primary schools and high school, 2 km from the Children’s Hospital with 1,000 modern beds; 3 km from the center of Binh Tan and Tan Phu. Golden location plus superior facilities but only starting price from $34,782 / unit, expressed the enthusiasm of investors in the development of this segment.
Changing the notion of “money of any kind”
Another project, Heaven Cityview, was launched in early October, with only 95% of units sold in a day. This shows that apartments under $43,478 are becoming hot spots in the market. In it, the apartment is designed a bedroom, a multi-purpose room, cost about $ 43,478, many customers are interested but not enough to sell.
“Apartments under $43,478 is still sustainable segment and not enough demand. However, that does not mean that the owner is entitled to “give” to the buyer, “- Mr. Le Sy Nam said, General Director of the House of Times, analysis: “Investors should also place themselves in the competitive landscape to build good products and competitive prices to change their perceptions of money.”
For example, Heaven Cityview is located on Vo Van Kiet Boulevard, District 8, easily connected to the center of District 1, only 15 minutes. Furniture used from reputable firms. With the starting price of $ 39.130 / unit, the project owner has also maximized the profit to share with the buyer.
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Mr. Huynh Ngoc Chau, Permanent Deputy General Director of L & L Group, said that the apartment of $43,478 was the main supply source in the HCM City market. However, for more than a year now, the purchase of apartments at this price, is increasingly difficult, with customers with real needs for housing by the land fund to develop the project is increasingly rare.
Over the past several years, the number of projects developed from the land fund has only been counted on the fingers. Therefore, cheap housing projects have to improve on smart trend.
Resolving this factor, The Avila 2 project (114 An Duong Vuong, Ward 18, District 8) is making a big mark. Investors have worked hard to produce a smart apartment with only 76-77 square meters. Customers will own 3 bedrooms with all the air-conditioned bedrooms and suites – This apartment is said to be an attractive option for families of 2 or 3 generations to live together with the price of only $34,782 – $43,478. Investors continue to associate with BIDV Bank with 100% financial commitment to complete the project with the size of 6 blocks, each block is 18-27 stories high (2 basements) with about 3738 apartments, addressing a significant demand of residents in District 8.
“Low-margin housing, the pressure is high if the business is not qualified, but also the opportunity for the prestigious investors” scored “, creating confidence with customers”. Mr. Chau said.
In the plan for development and management of housing for HCMC residents in the period 2016-2020, will strive to build about 20,000 houses in society, priced from $13,043 – $43,478. This is considered a new effort of the city government to bring the apartment price close to the affordability of low-income people. At the dialogue between the Department of Construction and real estate companies, Director Tran Trong Tuan said that will improve the administrative procedures, creating conditions for businesses to cheap housing.
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