Vietnam’s low-cost housing price higher 2 times than regional average

The price of low-cost houses in Vietnam now is 2 times higher than surrounding countries’ average because the domestic housing construction price is heavily dependent on many unrighteous factors, the An Ninh Thu Do newspaper reported on April 26, quoting Nguyen Truong Tien-Vice chairman of Vietnam’s Association of Construction Contractors as saying.

In Hanoi, some investors of cheap housing projects are proposing a price of 11 million dong per square equaling to $560 per sqm that is 2 times higher than regional average. Some realty developers said that if getting land rental incentives or exemption, the construction cost for low-income earners will be only 5 million dong per square meters, he noted.

Meanwhile, a German-Malaysian joint venture group in Vietnam is offering a technology of constructing 20-storey housing building at a price of only $250 per sqm with an equivalent quality that Vietnam is doing. In his point of view, the construction cost of cheap housing projects should be at more than 5 million per sqm suitably in respect to relatively good geological ground (the cost excludes costs for ground clearance).

He attributed the difference in cheap housing prices of three big cities (11.6 million/sqm in Hanoi, 8.5-10 million/sqm in HCM City, and 5.2 million/sqm in Da Nang) to levels of construction engineering and designer teams, supervisors and materials… Enterprises in Da Nang have qualified management level and are aware of applying more new technologies than other provinces/cities.

Ministry of Construction has submitted the National Housing Project that lacks the role of technical sciences and technologies resulting in cheap prices. – Vietbiz24

Tags: Vietnam Low-income housing, vietnam real estate market

Posted by VBN on Apr 27 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