Illustrative image (Source: VNA)Hanoi (VNA) - Theproperty market expects to see a wave of developers expand into affordablehousing developments, which faced a severe shortage until the Government tooksteps to promote investment.
Investments in affordable homes are encouragedby Prime Minister Nguyen Xuan Phuc at a recent conference in Hanoi.
Heating the market, developmentgiant Vingroup--previously known for its luxury real estate brands--introducedVinCity, a brand for affordable homes.
Le Khac Hiep, Deputy Chairman ofVingroup, said that VinCity was not social housing, but instead a developmentfor low and middle income earners.
VinCity apartments will be priced from just 700 million VND (31,250 USD) perunit, lower than the current market’s average price at 1 billion VND of similarapartments, but they will still offer adequate facilities such as schools,hospitals, shopping centres and parks with ensured quality and professionalservices.
In an announcement late last week,Vingroup said that around 200,000 – 300,000 Vincity affordable apartments wouldbe developed in the next five years.
Vincity will first be built in sevenprovinces and cities, including Hanoi, Hung Yen, HCM City, Hai Phong, Thanh Hoa,Ha Tinh and Nha Trang. In Hanoi and HCM City, the gated urban areas will bedeveloped in suburban districts to ease population density and traffic pressurein the downtown areas.
Hiep said that construction isexpected to start early next year in all seven provinces and cities. Vincitywill build in Gia Lam and Dan Phuong districts in Hanoi and District 7 andDistrict 9 in HCM City.
Apartments will be between 35 sq.mand 90 sq.m with prices from 13 million VND to 19 million VND per sq.m.
Vingroup’s expansion into affordablehousing has cheered the market, which had been warned of an imbalance betweensupply and demand since 2015.
According to Le Hoang Chau, Presidentof HCM City Real Estate Association, this is good news for home-seekers,especially low-income earners.
Experts said that the giantdeveloper’s capitalisation on affordable homes will cause other developers toreconsider their competition strategies and place greater focus on thissegment, which will contribute to move the market’s supply and demand towardbalance and benefit home buyers.
“Affordable homes are still of goodliquidity, but the shortage remains severe,” Chau said, forecasting thataffordable housing will continue to lead the market next year.
Besides VinGroup, several propertydevelopers--including Ecopark and Him Lam--are taking steps into the field.
Experts say expanding into thissegment will be a smart move for property developers, as the Ministry ofConstruction forecast that 70 percent of market demand will be for affordablehousing in 2017.
Nguyen Hoai An, CBREVietnam Directorof Research, Consulting and Asset Management Services, said that competition inthis segment will grow harsh, which should urge developers to focus on qualityand infrastructure development.
An said that the reason why propertydevelopers are turning their eyes from luxury appartments to affordable homesis that the former’s sales are showing signs of slowing down while the marketfor the latter is getting thirstier.
Expert Le Ba Chi Nhan said thatdeveloping affordable homes of good quality and facilities requires landavailability, which will be a major factor for developers.-VNA
Investments in affordable homes are encouragedby Prime Minister Nguyen Xuan Phuc at a recent conference in Hanoi.
Heating the market, developmentgiant Vingroup--previously known for its luxury real estate brands--introducedVinCity, a brand for affordable homes.
Le Khac Hiep, Deputy Chairman ofVingroup, said that VinCity was not social housing, but instead a developmentfor low and middle income earners.
VinCity apartments will be priced from just 700 million VND (31,250 USD) perunit, lower than the current market’s average price at 1 billion VND of similarapartments, but they will still offer adequate facilities such as schools,hospitals, shopping centres and parks with ensured quality and professionalservices.
In an announcement late last week,Vingroup said that around 200,000 – 300,000 Vincity affordable apartments wouldbe developed in the next five years.
Vincity will first be built in sevenprovinces and cities, including Hanoi, Hung Yen, HCM City, Hai Phong, Thanh Hoa,Ha Tinh and Nha Trang. In Hanoi and HCM City, the gated urban areas will bedeveloped in suburban districts to ease population density and traffic pressurein the downtown areas.
Hiep said that construction isexpected to start early next year in all seven provinces and cities. Vincitywill build in Gia Lam and Dan Phuong districts in Hanoi and District 7 andDistrict 9 in HCM City.
Apartments will be between 35 sq.mand 90 sq.m with prices from 13 million VND to 19 million VND per sq.m.
Vingroup’s expansion into affordablehousing has cheered the market, which had been warned of an imbalance betweensupply and demand since 2015.
According to Le Hoang Chau, Presidentof HCM City Real Estate Association, this is good news for home-seekers,especially low-income earners.
Experts said that the giantdeveloper’s capitalisation on affordable homes will cause other developers toreconsider their competition strategies and place greater focus on thissegment, which will contribute to move the market’s supply and demand towardbalance and benefit home buyers.
“Affordable homes are still of goodliquidity, but the shortage remains severe,” Chau said, forecasting thataffordable housing will continue to lead the market next year.
Besides VinGroup, several propertydevelopers--including Ecopark and Him Lam--are taking steps into the field.
Experts say expanding into thissegment will be a smart move for property developers, as the Ministry ofConstruction forecast that 70 percent of market demand will be for affordablehousing in 2017.
Nguyen Hoai An, CBREVietnam Directorof Research, Consulting and Asset Management Services, said that competition inthis segment will grow harsh, which should urge developers to focus on qualityand infrastructure development.
An said that the reason why propertydevelopers are turning their eyes from luxury appartments to affordable homesis that the former’s sales are showing signs of slowing down while the marketfor the latter is getting thirstier.
Expert Le Ba Chi Nhan said thatdeveloping affordable homes of good quality and facilities requires landavailability, which will be a major factor for developers.-VNA
VNA
