Vietnam Real Estate Market News

Advertisements

Random Post

• Booking agents plan to sue Indochina Airlines
• Vietnam reserves slump by 35 percent
• Material shortages make enterprises suffer
• HCM City tackles online game addiction
• Philippines rice import delay wont hit Vietnam
• Vietnam still be low-income country

Vietnam Real Estate Market News

Vietnam Business » Vietnam Real Estate Market News » Property developers adjust for market demand

Property developers adjust for market demand

The trend of the mid- and low-cost apartment segment is expected to dominate the property market this year as many property developers have begun to tailor their products to meet market demand, providing affordable condos for mid-income homebuyers.

Most of the condo projects that have broken ground early this year are mid- and low-cost projects making people think this year will mark a joint year for the market shifting the demand from luxury apartments to the lower segment. Le Hoang Chau, chairman of the HCMC Real Estate Association, said that what has been learned from the market tells property developers and investors to adjust their business strategy as well as to accept narrowing their expected profit margins to match market demand. Some property developers have witnessed their business going strongly thanks to offering apartments ranging from VND500 million to VND1 billion each, while the luxury apartment segment has slowed. Among the realty companies, such as Nam Long and Dat Lanh, who have targeted the low-cost segment for years, some other players have joined the market with condo projects dotting districts around the city. Those projects include Le Thanh, Tan Mai, Blue Sapphire Binh Phu, 584 Lilama SHB and Anh Tuan in the districts of Tan Binh, Binh Tan, 6, Tan Phu and Nha Be respectively. Several other developers have broken ground for projects targeting mid-income homebuyers. Chau said that although the profit margin was narrowed when investing in the low-cost segment, it would help developers and investors grow firmly. Nguyen Van Duc, deputy director of Dat Lanh Real Estate Co., supported this idea, saying this year would be a hinge year for developers to adjust their business by developing more low-cost apartments rather than offering luxury apartments. Duc said the luxury apartment segment had accounted for 70% of the apartments in the market, but the trend of the low-cost segment would take the market this year, drawing the attention of investors and buyers thanks to its liquidity. Like other property experts, he said the market had begun to see competition among developers as there were more and more low-cost condo projects joining the market. According to the market research company CB Richard Ellis, 28,000 apartments from 57 projects will be launched to the market this year, including 10,000 mid-end apartments and 5,000 low-end apartments.

Vietnam Business And Financial News Network. Source [english.thesaigontimes.vn]

More Vietnam Real Estate Market News:

• VinaCapital sets up JV to manage realty projects
• Capital needed to turn the market rosy
• Many overseas Vietnamese want to buy apartments, property
• Land heats up in Dong Nai, cools down in HCMC
• Gov't revokes 266,000 sqm of public land
• Hanoi real estate projects burst open
• Hanoi halts 11 golf course projects
• Government to continue helping the poor to build houses
• World Bank provide 160 million USD in no-interest credit urban upgrade project in Vietnam
• Hyatt Regency Da Nang Resort and Spa of Indochina Land

Popular Vietnam Business News

Deposit Interest Rate Rises to 10.2 Per Cent

Although the prime rate set by the State Bank of Vietnam (SBV) was kept unchanged at 7 per cent per annum in July, many banks still revised the borrowing rate.

Prospect for higher FDI

. After a standstill period due to bad impacts of the global economic slow down, more and more foreign companies have come to Vietnam to seek investment and business opportunities.

Leading B2B websites in Vietnam

. More than 100,000 Vietnamese firms have to date joined www.alibaba.com, one of the global leaders in business-to-business (B2B) e-commerce Websites, said China’s Alibaba Group. .About 4,000 Vietnamese small- and medium-sized

Vietnam airline market takes off

Economic recovery is set to spark demand, competition and reasonable fares on Vietnam�s air travel market, industry insiders say. Vo Huy Cuong, head of the Civil Aviation Administration of Vietnam�s

Workers quit factories for more cushy jobs, labor shortage ensues

After the Tet holidays, Tran Thi Phuong from northern Nam Dinh Province did not return to the Hanoi-based garment firm where she had worked for several years. The 28-year-old woman

Vietnam warned of inflation and trade deficit

The trade deficit is likely to prompt a further fall of the Vietnamese dong this year while food, housing and transport costs are leading inflation higher, according to a Standard

Uy Nam Construction Investment Joint Stock Co (Unicons) EPS at 16,644 dong/share in 2009

Uy Nam Construction Investment Joint Stock Co (Unicons) has recently reported audited fiscal report in 2009 with 663.01 billion dong in revenue from sales and service provision, up 24.16 percent

Vietnams export levels bear little impact from European debt crisis

According to trade experts under the Ministry of Industry and Trade, the impact of the debts crisis in Europe is not all that significant because the Vietnamese dong is still

Advertisement