Viglacera’s launch of 1,500 condos worth between 300 million dong to 500
million dong a unit has attracted public attention since late last month.
Besides views supporting the low-cost housing project, large numbers of
consumers and investors are still doubtful about its efficiency.
The construction of 1,500 condos
for low-income people by Viglacera Corporation in the urban area Dang Xa 2 in
Gia Lam District in Hanoi is expected to meet housing demands of about 6,000
locals when put into use in the second quarter in 2014. Representatives of the
developer said apartments of 30-50 square meters are priced from 300 million
dong to 500 million dong each.
Lai Thi Huyen, who has been
living in Hanoi for 20 years but has still been unable to buy a home, is very
excited about the above news. She said she is unable to buy a low-cost
apartment at 600-800 million dong but with the price range of 300-500 million dong,
chances are her family can afford to own an apartment near Hanoi.
However, Huyen is worried that
each flat covers just 30 to 50 square meters, so it cannot accommodate three
generations of her family.
An architect says that with the
construction cost of 3 million dong a square meter, homebuyers can own a
100-square-meter unit worth VND300 million. The problem is they can only buy a
30-square-meter home with the same amount of money due to the present sky-high
land prices, he noted.
Nguyen Thanh Cong, who is
searching for homes costing 300-500 million dong a unit, said he prefers a
25-square-meter serviced apartment rather than a private home of 30 square
meters.
In the meantime, there is a
misunderstanding among many people that the price of low-cost housing has edged
lower. Speaking to local media at the groundbreaking ceremony of the project in
Hanoi, Tran Thanh Tung, deputy general director of Viglacera, admitted his
company had no choice but to make flats smaller to fix the price at 300 million
dong a unit.
In fact, a majority of people
said they would carefully consider buying these apartments despite their
initial positive reaction to the scheme. The construction of nearly 2,000 flats
has sparked worries about future demand, especially when low-cost housing
demand is still low as recorded by industry insiders.
Meanwhile, according to a report
posted on the Government’s portal (chinhphu.vn), Hanoi plans to develop condos
worth from 300 million dong to 500 million dong each. The city will also start
work on some projects within the last quarter this year after finishing the
list of the projects to be developed by 2015, with investment capital sourced
from land use right transfers, ODA loans and all economic sectors.
As such, the effort to help
low-income people turn their dream of owning a home into reality is placing
pressure on the struggling realty market, which has already seen many low-cost
housing projects grappling with poor sales.
Saigon Times
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