Home buyers interested in small houses

People in HCM City now are interested in small houses (45-60 sqm each) at 13-14 million dong per sqm along with longer payment duration at a time when HCM City real estate market remains gloomy. These houses belong to being-constructed or almost completed projects.
Data of HCM City realty trading floors showed that small apartments at 13-14 million dong/sqm is attractive and becoming bright point of the property market in the middle of third quarter of this year. Those with the price of 15 million dong/sqm is less attractive. Between July and August when the supply was limited because of capital shortage, some firms were trying to maintain execution progress and select soft-priced apartment segment.

Particularly, Song Phat property trading floor reported it sold nearly 30 apartments in Tan Mai project (Hanoi). The firm’s General Director Tran Tan Phat said that only 80 Tan Mai apartments were offered to the market, but customers still paid attention to the product.

Similar sales can be seen in Era Town project at 15 million dong per sqm, 4S Riverside Thanh Tuong Loc project at 14.5 million dong/sqm.

100 of 800 apartments of Le Thanh project, which were sold via ACB Real Estate Floor (ACBR), have an area of 120 sqm each and price range of 12.5-13.5 million dong per sqm.

“The difficulty of the market at this time is that the supply of cheap products and small houses was limited”, ACBR’s General Director Pham Van Hai assessed. The type of product may help recover the market if investors are paying more attention to the segment.

Reported in the HCM City People’s Committee’s document sent to Ministry of Construction, successful transaction of cheap houses continues leading the market, accounting for 66.3% of total trade thanks to high demand of residents. In Jan-June, the city had only such 6 completed housing projects (at lower 16 million dong per sqm).

Meanwhile, prices of luxury houses and high-class apartments fell sharply compared with late 2010, down by 1.35% and 17.2% respectively. Those of medium-class apartments declined 10.28%.

Following the current movements of the real estate market, Jeremy S.J King-Managing Director of Knight Frank realty consulting firm said: “Apartment prices are staying at bottom of the market. Real estate will keep facing difficulties in short run. Within next 6-9 months, it will be the good time to buy real estate”.

In his opinion, the market is coping with many hardships but as well as meeting a lot of opportunities in which buying cheap houses aims to get future profits. – Vietbiz24

Tags: Vietnam Property market, Vietnam property sector, vietnam real estate market