Demand of cheap condos to increase in 2017

The demand of inexpensive apartment outweighed the supply in several last months of the year, though developers cried out for selling many blocks lately. 

Filed Photo: SGGP

In 2016, the supply of deluxe apartments has been mushrooming, exceeding the demand, said experts, while there was a few of projects of inexpensive apartments sold under VND1 billion. The supply could not meet the increasing demand.

A report by U.S. research agency JLL, Ho Chi Minh City currently is building 64,000 condos and 2,700 villa. Of the figure, half of them have been advertised at price of VND45 million per meter square, accounting for 70 percent of the supply.

Similarly, in Hanoi, over 59,000 condos are being built  and it is scheduled that more than 11,000 condos of many projects will be supplied for the market in the quarter and 70 percent of them are deluxe.

Meanwhile, there was a few condos sold at price of VND15-17 million per meter square in the market and most of them locate in outlying districts Hoai Duc, Ha Dong, Long Bien, Gia Lam, and Thanh Tri.

Realty experts said that in 2017, customers will favor in condos worth VND1-1.5 billion. Accordingly, largest property developers will provide average condos whose supply is limited.

It is forecast that in early 2017, deluxe condos will be abundant while there was a shortage of cheap ones for low-income people. Supply of commercial apartments worth VND15 million per meter square  in the market is also limited because of low profits, developers are uninterested in it.

By Thanh Trang - Translated by Uyen Phuong

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