HCMC Real Estate lacks cheap apartment projects

Currently, HCMC is experiencing strong population pressure, especially mechanical migration. HCMC real estate projects in the cheap segment are relatively scarce compared to actual demand.

Cheap apartment projects are  rare

Based on the results in the second quarter of 2017, HCM City real estate has more than 10,000 apartments were launched. However, the average number of mid-size homes for middle-income people is only 40%. According to the survey of the Department of Construction & Research Institute of Development City. Ho Chi Minh City said that the city has nearly 500,000 households have no housing, which proves that this segment has not really been salient investors and concerns such as high-end apartments.

The start-up projects are mainly in the high end apartment segment

District 2 and District 7 occupied about 21% of the market share of new apartments in HCMC. However, the reality is that the supply of cheap apartments is not much and meet the expectation of people. The starting projects here are mid-range apartments, villas, townhouses and high-end apartments. The lack of supply for cheap apartments has caused less supply than demand. Most of the projects offered for sale in affordable price people quickly fall into the fire. Meanwhile, the remaining segments are mid-range and high-end apartments that are too far away, yet are far out of reach for those with real needs.

The low-cost housing segment is quite limited and does not meet demand

Estimated from now until 2020, There are about 81,000 households in Ho Chi Minh City needed to have a house for rent. However, the segment of affordable housing in this segment is still quite limited and not meet the needs for people who tend to buy real housing. Statistics of Real Estate in Ho Chi Minh City. In fact, the number of projects priced at less than VND1 billion is very scarce. In particular, the outstanding projects received attention and attention of the people include: Vincity of Vingroup Heaven Riverview (District 8), Saigon Intela (South Saigon), Green Town (Binh Tan District) ). In the third quarter of the year, the market will receive new supply from Roxana Plaza (North Saigon) and Hausneo (Distric 9).

Why does HCM City real estate lacks cheap apartment projects?

According to many experts, the investment in cheap houses often have low profit margin

It can be said that 2018 will continue to be the year of the low and mid price real estate market of HCMC real estate market. This is the product line serving real housing needs, consistent with the average income of the majority of people in HCMC. However, many real estate experts said that the investment in low-cost houses often have low profit margins, requiring investors to strictly manage the cost of inputs.

If investors can focus on investing in good technology, cost savings, reasonable profit calculation for businesses, focus on the interests of customers, the price of apartments will be appropriate utilities and safety for residents.

At present, the shortage of cheap apartments in part due to the influence of rapid urbanization leads to a rapid increase in land prices, leading to a sharp increase in input prices, leading to high cost. In addition, the rapid population growth also leads to transportation infrastructure, education and health infrastructure becoming overloaded, which makes approving and investing new projects more difficult than before, The procedure is also lengthy.

Although the State has a policy of social housing and resettlement housing, it is also necessary to have policies to support enterprises when investing in real estate in Ho Chi Minh City in the segment of affordable housing for low-income people.

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