Businesses turn into low cost houses

Several companies have dividing their apartments into smaller ones or changing commercial housing projects into social projects to serve low income group of customers, according to HCMC Department of Construction.
An Suong residential area for low income people and resettlement in District 12 (Photo: SGGP)
Fifty percent of 2,000 inventory apartments sold in the first half this year were earlier divided into smaller ones. Investors have asked for permission to divide another 5,000 apartments into 9,100.
Projects with apartments priced less than VND1 billion each have seen good trade.
Hoang Anh Saigon Company was successful in selling 53-65 square meter apartments with two bed rooms costing only VND699 million.
The company’s director general Hoang Chi Thanh said that the project has attracted a lot of customers because it meets demand and suits financial ability of wage earners.
Hung Thinh Land Company has sold out 187 apartments at price averages VND725-1,000 million per 54-60 square meter one within two weeks.
The company earlier launched two low cost apartment projects including 8X Dam Sen in Tan Phu and 8X Thai An in Go Vap. Prices swing from 600-725 million. A total of 520 apartments have been purchased so far.
Projects in the low cost segment will continue to lead the market, said Nguyen Duy Minh, the company’s director general.
Hy Dia Company has just introduced Lotus Apartment in eastern HCMC with prices at VND368 million not including value added tax. Thu Duc Housing Development Company is going to launch a series of low cost apartment blocks named 3S.
The interest rate of the VND30 trillion credit package for social housing has reduced to 5 percent per year, which is expected to make the low cost segment more eventful and contribute to warm up the real estate market.
According to report from the State Bank of Vietnam in HCMC, the real estate credit grows 7 percent over the beginning the year.

By Do Tra Giang – Translated by Hai Mien

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