Illustrative photo (Photo: nld.com.vn) HCM City (VNA) - Housing developers in the country especially in HCM Citywill shift from luxury apartments to the mid- and low-end segments next year,experts have said.
In its latest analysis, the HCM City Real Estate Association has made a similarforecast.
Le Hoang Chau, its chairman, said there would be a big change in the market toaddress the imbalance in supply.
While there is excessive supply of high-end housing, there is a dearth at thelower end, he said.
There would be a shift towards affordability next year, he said.
Hecited Vingroup’s announcement it would build 200,000-300,000 apartments in thenext five years at prices of 700 million-1 billion VND (34,000-49,000 USD).
Many other major developers like Him Lam Land, KhangĐien, Sacomreal, FLC,Vihajico, and Nam Long also plan to build affordable apartments.
LeXuanNga, general director of World Star Land, told a conference this weekthat transactions in the high-end segment have reduced this year, especially inHCM City.
Next year the property market would witness a new trend of developers focusingon the mid- and low-end segments to meet demand for housing, he added.
Vo Thi Diu Hien, general director of PHP Real, said the national housing marketis driven by the low- and mid-end segments.
In 2013-14 they had helped the market recover from a recession, but wereignored in 2015-16, causing a shortage, she said.
Next year these segments would grow strongly, stabilising the market, she said.
Do Thu Hang, a senior official at Savills Vietnam, predicted national housing,especially in the low-priced segment, to surge to meet the unfulfilled demand.
Thoi Bao Kinh Te Viet Nam (Vietnam Economic Times) quoted her assaying that 2.6 million workers work in industrial zones and the numberincreases by 200,000 a year.
Three-fourths of them are migrants with an average income of 2,500 USD a year,and this is a promising sign for the market, she added.
Experts said other segments too would grow next year but not strongly.
Nga of World Star Land said high-end supply would still increase but onlystrong developers would succeed.
Nguyen Duc Thanh, head of the Vietnam Institute for Economic and PolicyResearch, said other property segments like hotels, offices, and industriallands would stagnate next year due to changes in the global economy.
Until two or three months ago many foreign investors were coming to Việt Nam toexplore investment opportunities, but the numbers have dried up now, he said toexplain why the segments would slow down.
Nguyen Tran Nam, chairman of the Vietnam Real Estate Association, said overallthe market is thriving thanks to the stable economy, rapid urbanisation andimproving living standards.-VNA
In its latest analysis, the HCM City Real Estate Association has made a similarforecast.
Le Hoang Chau, its chairman, said there would be a big change in the market toaddress the imbalance in supply.
While there is excessive supply of high-end housing, there is a dearth at thelower end, he said.
There would be a shift towards affordability next year, he said.
Hecited Vingroup’s announcement it would build 200,000-300,000 apartments in thenext five years at prices of 700 million-1 billion VND (34,000-49,000 USD).
Many other major developers like Him Lam Land, KhangĐien, Sacomreal, FLC,Vihajico, and Nam Long also plan to build affordable apartments.
LeXuanNga, general director of World Star Land, told a conference this weekthat transactions in the high-end segment have reduced this year, especially inHCM City.
Next year the property market would witness a new trend of developers focusingon the mid- and low-end segments to meet demand for housing, he added.
Vo Thi Diu Hien, general director of PHP Real, said the national housing marketis driven by the low- and mid-end segments.
In 2013-14 they had helped the market recover from a recession, but wereignored in 2015-16, causing a shortage, she said.
Next year these segments would grow strongly, stabilising the market, she said.
Do Thu Hang, a senior official at Savills Vietnam, predicted national housing,especially in the low-priced segment, to surge to meet the unfulfilled demand.
Thoi Bao Kinh Te Viet Nam (Vietnam Economic Times) quoted her assaying that 2.6 million workers work in industrial zones and the numberincreases by 200,000 a year.
Three-fourths of them are migrants with an average income of 2,500 USD a year,and this is a promising sign for the market, she added.
Experts said other segments too would grow next year but not strongly.
Nga of World Star Land said high-end supply would still increase but onlystrong developers would succeed.
Nguyen Duc Thanh, head of the Vietnam Institute for Economic and PolicyResearch, said other property segments like hotels, offices, and industriallands would stagnate next year due to changes in the global economy.
Until two or three months ago many foreign investors were coming to Việt Nam toexplore investment opportunities, but the numbers have dried up now, he said toexplain why the segments would slow down.
Nguyen Tran Nam, chairman of the Vietnam Real Estate Association, said overallthe market is thriving thanks to the stable economy, rapid urbanisation andimproving living standards.-VNA
VNA
