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 Vietnam Cushman & Wakefield, said so far this year, 46 development projects with 8,550 apartments costing an average of 15.5 million VND 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 12.5 million-13.5 million VND per square metre and with an average size of 60sq.m.
Thu Duc Housing Development Joint Stock Co 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 15.5 million VND 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 20 million VND 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 400 million VND - 800 million VND are the most in demand, property brokers said, adding 80 percent of successful housing transactions are in the medium – and low-cost segment./.
Hugo Slade, deputy director of market research company Vietnam Cushman & Wakefield, said so far this year, 46 development projects with 8,550 apartments costing an average of 15.5 million VND 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 12.5 million-13.5 million VND per square metre and with an average size of 60sq.m.
Thu Duc Housing Development Joint Stock Co 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 15.5 million VND 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 20 million VND 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 400 million VND - 800 million VND are the most in demand, property brokers said, adding 80 percent of successful housing transactions are in the medium – and low-cost segment./.
