After a long absence, affordable apartments (grade C segment) have been deployed again and recorded many positive signals. According to a report by the Real Estate Association of Ho Chi Minh City (HoREA), in the past two years, the apartment segment with prices below 30 million VND/m² has almost disappeared from the Ho Chi Minh …
After a long absence, affordable apartments (grade C segment) have been deployed again and recorded many positive signals.
According to a report by the Real Estate Association of Ho Chi Minh City (HoREA), in the past two years, the apartment segment with prices below 30 million VND/m² has almost disappeared from the Ho Chi Minh City market. The city has opened to the market 14,443 apartments that are eligible to raise capital in 2021 with 73.98% of luxury apartments and 0% of grade C apartments.
However, based on the report of Batdongsan.com.vn, in the first quarter of this year, the number of searches for “Social housing” increased dramatically with a 139% increase over the same period. This shows that the demand for affordable housing has great attraction and plays a leading role in the market.
Savills Vietnam also showed that Ho Chi Minh City also offered more than 1,600 Grade C apartments for sale under VND 40 million/m² in the first quarter. This unit said, the primary selling price of the average affordable apartment decreased by 10% because new projects offered a lower floor price compared to the same period last year.
In the context of the gloomy real estate market, CBRE Vietnam believes that people tend to be more interested in Grade C apartments. Specifically, many policies have been issued for the housing segment for low-income people such as “social housing, housing” for workers with a scale of VND 120,000 billion. This is a potential solution to remove the imbalance between supply and demand of the housing market for many years.
Based on the research of Batdongsan.com.vn, the supply and transaction activities of apartments in the South are gradually shifting towards the affordable and mid-end segment. Many investors are restructuring products to meet real demand because the projects are in progress and cost about 1 – 1.6 billion VND with good liquidity.
CBRE Vietnam Managing Director – Ms. Duong Thuy Dung shared that until now the number of Grade C houses is still scarce, so the market is expected to have more supply of social housing products as well. as commercial housing to balance the market.
Sharing the same view, Mr. Le Hoang Chau – Chairman of HoREA said: “This is a worrying paradox, because affordable housing and housing for low-income people need to be the mainstream segment, accounting for a large proportion. high in the market because of the huge but unmet need”.
Mr. Chau said that in Ho Chi Minh City, the surplus of high-priced houses and the shortage of low-priced houses in the past two years is alarming. It can be seen that the Grade A segment always dominates the market and accounts for 70%, while the Grade C segment has no products. Accordingly, he sees the return of this segment as a positive sign because the Government has paid attention to social housing, businesses have also turned to the affordable “commercial housing” segment. However, to balance this lever, it will take a long time to restructure the product.
On the other hand, the Hanoi market is also facing a shortage of new projects and low-cost housing. Savills Vietnam announced that in 2022, Hanoi had more than 12,600 apartments for sale, reaching the lowest transaction rate in the past 8 years, of which Grade B accounted for more than 80%. The primary price is about 40 million VND/m². Accordingly, Hanoi has completed 25 projects from 2016 to 2020, but social housing only accounts for 20.2% of the plan.
In addition, many experts believe that there is a need to adjust interest rates for buyers of social housing, housing, workers because the current interest rate is still high, exceeding the income level of many households. family.
By Vi Oanh
