Small flats to warm realty market: Horea

The HCM City Real Estate Association (Horea) has proposed developing small apartments in an effort to stimulate demand for housing and help investors release thousands of unsold flats.
Le Hoang Chau, chair of Horea, said the association had sent a petition to the Ministry of Construction asking for permission to let property developers build condos from 30-70 square meters.

Such flats will be offered to young families earning average incomes at a reasonable price of around 500 million dong per unit, Chau noted.

According to Chau, the realty market in HCM City with an unbalanced development has failed to meet the growing need for housing while there are an abundance of large, expensiveapartments.

In fact, related laws including the Housing Law and Decree 71 allow social housing projects to construct condos covering 30-60 square meters each unit.

It is also expected that developing small flats will save the industry players from the dilemma owing to weak consumption. However, this idea is not new to business owners.

Hung Gia Phuc Investment and Development Co. last year asked for permission to build 30-50 square metre flats. Similarly, Dat LanhReal Estate Co., proposed constructing 20-30 square metre apartments in its scheme.

The idea has yet to get the go-ahead because there are still concerns over planning construction areas, population density and public benefits in these projects, which tend to become rat-holes in the sky.
Saigon Times Daily

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

Posted by VBN on Oct 8 2011. Filed under Real Estate. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry