Viglacera has started work on a housing project for workers on 20 hectares at Yen Phong Industrial Park in the northern province of Bac Ninh. Half of the area is reserved for buildings of nine to 12 levels with a total of 4,000 units for workers at the industrial park.
Having launched more than 300 units at Him Lam Phu An project in HCMC’s District 9, Him Lam Land is looking to sell the remaining 1,000 units of the project this year.
The apartments are priced at VND1.5-1.8 billion each and buyers can pay by installment over six years.
Him Lam Land plans to provide the market with some 2,000 low-cost apartments this year.
Vingroup, the country’s leading real estate developer known for major high-end housing, resort and commercial center projects, said late last year that it would build 200,000 to 300,000 apartments costing VND700 million each in seven cities and provinces.
In HCM City, the group is rolling its sleeves to launch sales at two megaprojects in districts 9 and Binh Chanh.
Muong Thanh Group has also joined the affordable housing segment with plans to launch 800 condos priced VND9.5 million per square meter in Ha Dong District, Hanoi this year. Meanwhile, Viet Hung Urban Development and Investment Joint Stock Company is expected to put up for sale 5,000 apartments at a cost of VND1 billion each in the capital city this year.
Property developers Nam Long, Hung Thinh, Nha Mo and Thu Duc House are preparing to launch hundreds of apartments this year.
Property service provider CBRE Vietnam has projected around 40% of the apartments available for purchase in HCMC this year are in the affordable housing segment.
The HCM City Real Estate Association said 2017 would see a significant rise of investment in affordable housing projects, supported by the huge demand of medium-income earners.
The supply of high-end apartments is now higher than in other segments but the local property market is expected to see a balance between supply and demand by 2020.
Property experts forecast a large number of people are still in dire need of budget homes until 2030 since demand for such housing makes up 70% of total demand.
According to CBRE, the absorption rate of budget condos would be 40-50% in 2017-2019, with this year’s rate predicted to rise to 60%.
Le Hoang Chau, chairman of the HCM City Real Estate Association, said HCM City’s housing demand is huge as the city is home to three million migrants, more than 500,000 households in need of homes and 50,000 newly-married couples a year.
Stephen Wyatt, country head for Jones Lang LaSalle Vietnam, said property developers could gain high profits from budget housing projects because of high demand.
However, Wyatt said to secure high profits, investors should acquire land connected to sufficient infrastructure and manage costs efficiently so as to sell apartments at reasonable prices to attract customers.