Saigon’s Mid-Priced Flats Are Trending Up

Saigon’s Mid-Priced Flats Are Trending Up
November 02 20:29 2017

The mid-priced apartment segment in HCM City is developing strongly with demand and supply and liquidity all looking up, especially in the eastern part, experts said.

The segment with prices ranging from US$800 to $1,500 per square metre is accounted for 60 percent of third quarter launches, a report from market researcher CBRE Vietnam said.

The HCM City Real Estate Association had predicted at the beginning of this year that the property market would see a strong restructure, with developers switching from luxury to mid-priced apartments. They had explained that the rebalancing would take place to resolve the mismatch between demand, which was overwhelmingly for cheaper units, and supply, which was skewed in favour of high-priced ones.

Vinh Kiem, an investor in HCM City, said “Mid-range apartments built by prestigious developers bring solid returns to buyers. Since prices are not high, an investor can buy several at a time”, as quoted by Dau Tu newspaper (Vietnam Investment Review). Last May, Kiem bought two apartments in District 9 at around VND1.7 billion each and now they have both appreciated by VND300 million. But he is waiting for the prices to rise even further.

For people looking to buy houses to live in them too, mid-priced apartments are a good choice since many are in good locations and offer many amenities. To meet the growing demand in this segment, several major developers like Vingroup, Hung Thinh and Him Lam Land have launched many projects.

But projects in the eastern part of the city, in places like districts 9 and 2, are customers’ favourites and are thought to bring profits of 20-50 percent to buyers. Investors said apartments in the said area are in high demand due to the excellent and constantly developing infrastructure which includes the city’s first metro route. The news that authorities are planning to build the Rach Chiec Sports Centre in District 2 for SEA Games 31 has sparked off even more interest in the area.

Investors now expect the market to remain strong for the next two years.  “The improved infrastructure and the Rach Chiec Sports Centre would be factors in pushing up prices in the area”, said Ngo Quang Phuc, general director of Him Lam Land.

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