developers in the country especially in HCM City will shift from luxury
apartments to the mid- and low-end segments next year, experts have said.– Photo nld.com.vn
– Housing developers in the country especially in HCM City will shift from
luxury apartments to the mid- and low-end segments next year, experts have
In its latest analysis, the HCM City Real Estate
Association has made a similar forecast.
Lê Hoàng Châu, its chairman, said there would be a big
change in the market to address the imbalance in supply.
While there is excessive supply of high-end housing,
there is a dearth at the lower end, he said.
There would be a shift towards affordability next year,
He cited Vingroup’s announcement it would build
200,000-300,000 apartments in the next five years at prices of VNĐ700
million-1 billion (US$34,000-49,000).
Many other major developers like Him Lam Land, Khang
Điền, Sacomreal, FLC, Vihajico, and Nam Long also plan to build affordable
Lê Xuân Nga, general director of World Star Land, told
a conference this week that transactions in the high-end segment have reduced
this year, especially in HCM City.
Next year the property market would witness a new trend
of developers focusing on the mid- and low-end segments to meet demand for
housing, he added.
Võ Thị Dịu Hiền, general director of PHP Real, said the
national housing market is driven by the low- and mid-end segments.
In 2013-14 they had helped the market recover from a
recession, but were ignored in 2015-16, causing a shortage, she said.
Next year these segments would grow strongly,
stabilising the market, she said.
Đỗ Thu Hằng, a senior official at Savills Vietnam,
predicted national housing, especially in the low-priced segment, to surge to
meet the unfulfilled demand.
Kinh Tế Việt Nam(Vietnam
Economic Times) quoted her as saying that 2.6 million workers work in
industrial zones and the number increases by 200,000 a year.
Three-fourths of them are migrants with an average
income of US$2,500 a year, and this is a promising sign for the market, she
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 only strong developers would succeed.
Nguyễn Đức Thành, head of the Việt Nam Institute for
Economic and Policy Research, said other property segments like hotels,
offices, and industrial lands would stagnate next year due to changes in the
Until two or three months ago many foreign investors
were coming to Việt Nam to explore investment opportunities, but the numbers
have dried up now, he said to explain why the segments would slow down.
Nam, chairman of the Việt Nam Real Estate Association, said overall the
market is thriving thanks to the stable economy, rapid urbanisation and
improving living standards. - VNS