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The supply of mid-range apartments will increase in the real estate market

The supply of mid-range apartments will increase in the real estate market

According to HoREA’s latest report on the real estate market in the first months of 2018, the whole city. Ho Chi Minh City has 9,174 apartments are launched by investors.

In particular, the segment of luxury apartments accounted for 41.8% of the market, up much compared with the same period in 2017 (accounting for 31.3%); the proportion of mid-end apartments accounted for 37.7% of the market; Low-end segment occupies only 20.5%.

This data shows that the real estate market is developing unreasonably between demand and supply. Investors are focusing on high-end segment, while housing demand comes from middle income customers.

The supply of mid-range apartments will increase in the real estate market
The supply of mid-range apartments will increase in the real estate market

According to Mr. Su Ngoc Khuong, Director of Savills Investment Vietnam, the demand for housing in the city today is real. There are about 10 million people living in HCMC with 2-3 million people living and working in the province. Therefore, they need stable and long-term housing in the city.

It is from this demand, said Stephen Wyat, General Director of JLL Vietnam, medium and high-end apartments will continue to be the main market segment in the coming time due to good supply in both segments with many improvements in construction services, utilities.

Demand for housing will also increase sharply, largely due to increased incomes and spending in general as well as the expansion of the middle class in Vietnam in recent times. Living comfort and safety in apartment projects are also being highlighted by young families, coupled with an increase in income in recent years that will lead to an increase in demand for apartments.

Catching up with this development, many investors are stepping up activities in the segment of mid-range apartments to meet the needs of the majority of customers. According to HoREA, middle-class and low-end housing remains the segment accounting for 60-70% of the market, also the highest liquidity segment.

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The supply of mid-range apartments will increase in the real estate market
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