Mini-condos attract investor attention
The prices of mini apartments in Hanoi has surged after a decision
to grant ownership titles to individual small apartments.
The prices of mini apartments in Hanoi has surged after a decision
to grant ownership titles to individual small apartments.
The decision was meant to help low-income families to buy their first property, but demand increased dramatically after the decision, with home buyers and investors attracted to the prospect of capital gains, analysts said.
Also, mini apartment sales don't have to go through a property transaction centre.
To qualify as mini apartments, there must be at least two floors to the building with two or more apartments measuring at least 30sq.m on each floor.
"Demand for mini apartments increased by 40 percent and the price increased by about 20 percent," www.batdongsan.com.vn director Le Xuan Truong said.
Prices were now between 750 million VND (39,000 USD) to 1.2 billion VND (60,000 USD), Truong said.
Each apartment could bring the developer a profit of between 150 million VND (7,800 USD) and 200 million VND (10,000 USD)," he said.
The high demand has attracted investment from small developers.
Developer Dinh The Toan said he built a five-floor mini apartment building with 12 apartments on an area of 150sq.m. After the decision was released, the apartments increased in value by 300 million VND (15,000 USD) to around 900 million VND (45,000 USD) each.
Quang Minh Construction and Investment Joint Stock Company spent 10 billion VND (526,000 USD) to buy 200sq.m of in Cau Giay district to build 20 apartments.
We predicted demand would increase and we have not been disappointed, the company's marketing director Pham Manh Duong said.
Former deputy minister of Natural Resources and Environment Dang Hung Vo said the decision may relieve the accommodation shortage and provide an opportunity for low income families, but we may live to regret it.
He said such high-density living down small lanes was not accompanied by the development of extra infrastructure, such as water, electricity, sewerage, roading, extra schools, medical centres and open spaces.
They may turn into slums or ghettos in the future, Truong said./.
The decision was meant to help low-income families to buy their first property, but demand increased dramatically after the decision, with home buyers and investors attracted to the prospect of capital gains, analysts said.
Also, mini apartment sales don't have to go through a property transaction centre.
To qualify as mini apartments, there must be at least two floors to the building with two or more apartments measuring at least 30sq.m on each floor.
"Demand for mini apartments increased by 40 percent and the price increased by about 20 percent," www.batdongsan.com.vn director Le Xuan Truong said.
Prices were now between 750 million VND (39,000 USD) to 1.2 billion VND (60,000 USD), Truong said.
Each apartment could bring the developer a profit of between 150 million VND (7,800 USD) and 200 million VND (10,000 USD)," he said.
The high demand has attracted investment from small developers.
Developer Dinh The Toan said he built a five-floor mini apartment building with 12 apartments on an area of 150sq.m. After the decision was released, the apartments increased in value by 300 million VND (15,000 USD) to around 900 million VND (45,000 USD) each.
Quang Minh Construction and Investment Joint Stock Company spent 10 billion VND (526,000 USD) to buy 200sq.m of in Cau Giay district to build 20 apartments.
We predicted demand would increase and we have not been disappointed, the company's marketing director Pham Manh Duong said.
Former deputy minister of Natural Resources and Environment Dang Hung Vo said the decision may relieve the accommodation shortage and provide an opportunity for low income families, but we may live to regret it.
He said such high-density living down small lanes was not accompanied by the development of extra infrastructure, such as water, electricity, sewerage, roading, extra schools, medical centres and open spaces.
They may turn into slums or ghettos in the future, Truong said./.
You should also see
Lang Son province seeks global status for local geopark
A dossier has been built by the People’s Committee of the northern mountainous province of Lang Son to seek the UNESCO recognition of Lang Son Geopark as a global one.
See more
Business
Satisfaction of administrative services improves
Vietnamese citizens had greater satisfaction with the administrative services provided by State agencies last year, according to the Satisfaction Index of Public Administration Services (SIPAS) 2023 announced by the Ministry of Home Affairs (MoHA) on April 17.
Business
Petrol prices increase slightly on April 17
The retail prices of petrol were adjusted up from 3pm on April 17 by the Ministry of Industry and Trade and the Ministry of Finance.
Business
Central Highlands provinces seek closer trade, investment ties with India
A business and investment conference was held in Dak Lak province’s Buon Ma Thuot city on April 17 with the aim of enhancing connectivity between Indian firms and Central Highlands provinces.
Business
Foreign purchasers show interest in five product groups of Vietnam
Foreign hypermarkets, retail distributors and international buying group registering to join the Vietnam International Sourcing 2024 have shown interest in five groups of Vietnamese products, namely foodstuff, textiles and fashion accessories; shoes, backpacks, bags and accessories; sporting goods and equipment; and household appliances and furniture.
Business
Japanese investors join big real estate project in Binh Duong
Japanese and Vietnamese investors of The One World urban area project in the southern province of Binh Duong received in-principal approval at a ceremony in the locality on April 17.
