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The discussion about reasonable accommodation |
Accordingly, Vice Chairman Pham Lam revealed that since the second quarter this year, new real estate supplies are so limited, mostly consisting of land lots and low-rise houses at medium-high prices of VND30-80 million/m² (US$1,270-3,380). Apartments at the price of VND25 million/m² ($1,057) only account for 2 percent.
Deputy Director of HCMC Construction Department Nguyen Thanh Khiet further informed that in the first 6 months this year, HCMC is running 13 accommodation projects to sell over 14,500 apartments.
Among them, the luxury apartment segment of VND40 million/m² ($1,690) and above occupies 87 percent, which is an increase of 7.2 percent compared to this time last year. The mid-end segment of VND20-40 million/m² ($846-1,690) is witnessing a remarkable drop. Those under VND25 million/m² ($1,057) are extremely scarce, being replaced by social housing, because the investment for accommodation projects is at VND11 million/m² ($465) to begin with.
Experts in the field commented that despite the limited new real estate supplies, the number of accommodation transactions is seeing a slight rise, mostly in the apartment segment. In particular, in the second quarter of this year, there were about 3,700 successful transactions, making up 18 percent of the total new sales. That is a development of 30 percent compared to the previous quarter even though it is only 60 percent of this time last year.
This increase is thanks to more consumer confidence as a result of new policies issued by the Government, a drop in loan interest rates of banks, and incentive programs offered by real estate businesses. Therefore, it seems now is a good time to obtain a new house if needed.
Sadly, many people at present want to buy an apartment, yet they are unable to do so despite the financial support from the State because of a shortage in reasonable houses of under VND30 million/m² ($1,269). For instance, during the first 6 months of this year, the three new accommodation projects in HCMC belong to the mid-to-high-end segment.
It is necessary to introduce a support mechanism for affordable commercial and social housing, solutions to address legal-related issues, and more loan interest rate reduction, to increase the supply in this segment and help both investors as well as house buyers.
