The
year 2012 has seen many real estate firms in HCM City turning attention to
lowprice housing projects with small area.
"Cheap housing of medium area is our
target this year", said Le Chi Hieu, Chair of Thu Duc Housing Development
JSC. Currently, the prevailing price that range between 16 billion dong and 17
billion dong per square metre is anticipated to be further lowered. Such apartments
are reckoned to be of great demand and more affordable than other products.
Similarly, Le Hung, general director of HAGL
revealed intention to bring out newlybuilt low-cost apartments of small area
after quarter two. Specifically, the apartment project on Luy Ban Bich Road,
Tan Phu District is expected to come onto the market at 13 billion dong per
square metre.
The two remainders that are located in
District 7 are likely to be offered at 20 billion dong-22 billion dong per
square metre, yet the total price does not exceed 1.5 billion dong.
Unlike other HAGL's products, the small area
of which are 94 square meters, that of the new one will only be around 70
square metre with the price totalling roughly 800 million dong. Furthermore,
buyers could borrow up to 70pct of the contract value.
Product differentiation would be the only way
to make profit in the light of flat apartment market, according to Hung.
Therefore, apartments should be of more competitive prices in comparison with
tSTC in similar locations. Moreover, housing of small areas would make total
prices more affordable to most of the potential customers in HCM City.
"If interest rates cool down, apartments
of between 800 billion dong and 1.5 billion dong together with lending rate of
70pct of contract value would be saleable. HCM City's young population of
stable income could afford 250 billion dong-300 billion dong for a house on
instalment", Hung said.
In the meantime, Nguyen Phat Dat, Chair of
Phat Dat Real Estate Development JSC, opted to develop Everich 3 project in
District 7 of cheaper prices compared with similar current ones.
Presently, the Everich 1.2 is priced at
between 25 billion dong and 35.5 billion dong per square metre. The
newly-developed project will provide rough houses of more competitive prices
than others in similar locations which enable buyers to their own interior
decoration depending on financial capacity.
"Despite the market stagnancy, I believe
affordable housing will be saleable. The period 2012-2013 would call for real
estate firms' significant efforts to survive for the market to revive in
2014-2015", Dat reckoned.
Property firms' product restructuring is
likely to breathe life into the market this year, according to Pham Van Hai,
general director of ACB Real Estate JSC. While high-end apartment market is
fairly flat due to market's capital thirst, low-cost housing of medium area
could be a positive movement.
VietBiz24
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