Money Will Flow Into Cheap Homes In 2017

 The investment of a number of large enterprises in the low-cost housing will have a positive impact on the market, creating opportunities for housing for low-income and create a balance for the market, limit the wave of investment.

At the seminar “Trend of cash flow and real estate investment opportunities in 2017″ by real estate investment magazine CafeLand held on 16-12, Mr. Ngo Dinh Han, Sales Director of Nam Long Company, the unit is famous for affordable housing, assessing the potential of affordable housing in the Vietnamese market is not limited. Participating enterprises will not be afraid of output due to the large demand and the support from the government in terms of policy.

“Difficult investment in cheap housing is difficult to accumulate a suitable land fund for the development of this product line (scale is large, from 1ha), convenient transportation location, distance not too far from the center “Han shared.

Sharing experience in this segment, Mr. Han said that optimal control of inputs: costs such as design, construction, management, operation, sales, marketing … by the price. Out of this product line is usually set with very low oscillation amplitude.

The project location, the most reasonable is in the distance of 10km – 12km – 15km, the distance to the center about 30 minutes – 45 minutes. Convenient transportation, easy access to important areas of employment and public utility.

In terms of design, it is advisable to develop small size apartments with reasonable total value in the ability of customers. Applying the typical design and replication model, ensuring the suitability of the needs of the majority of customers through the survey study.

On construction and project management, Mr. Han said that it is necessary to use modern machinery and technology using prefabricated components (70%). In addition, investors need to shorten the development time, fast (Legal records), the active supply of building materials and select good capacity contractors.

Demand for affordable housing for low-income people remains high

Recommending to the authorities about the policies to support the development of affordable housing, Mr. Han said that reducing taxes, preferential land use fees, reduce procedures for businesses. is the most important condition for businesses to participate more in the cheap segment.

He suggested continuing to have preferential credit packages for businesses when investing in products in this segment. For home buyers, Mr. Han proposed continuing to have preferential credit packages for homebuyers (such as VND30,000 billion package), simplifying objects and procedures for dossier approval (for the segment of housing in the commune Assembly).

Le Hoang Chau, chairman of the HCM City Real Estate Association, warned that by the end of 2015, the association would see signs of a gradual decline and signs of risk. That is the difference between the supply and demand in the high-end real estate segment, the real estate downturn, bank credit offsets to a number of large enterprises including real estate.

“The association recommends businesses to develop affordable housing products. The recent involvement of Vingroup in this segment will have a positive impact on the market, creating opportunities for low-income homeowners and creating a balance for the market, limiting the investment, speculation wave.”Chau said.

Notably, Chau said that in 2017 there is no bubble that may follow the trend of stagnation as in 2016. Mergers and acquisitions business will also be stronger than before. Currently, the city has 500 projects suspended, this is a great opportunity for trading activities, although in 2017 the flow of foreign investment in real estate may be reduced. The trend of green property development will be the trend of the future.

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Looking at the real estate market in 2017, according to Tran Kim Chung, deputy director of the Central Institute for Economic Management, forecasts that the market will reduce the heat, the scale will decrease considerably due to the speculation. decline. Real estate will diversify, only some local projects have financial advantages, new products can be favorable.

“A number of implemented projects will be completed while some start-up projects may be postponed. The source of credit from the banking system for the market will be narrowed: commercial banks will not have much room for short-term capital as stipulated by the State Bank of Vietnam from January 1, NPLs are estimated at around VND100 trillion of bad debt. The low-end segment of social housing and apartments (around VND1 billion) will be the focus of the market in the coming period, “Chung said.

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