Property market last weekend was bustle of informatio that apartments cost an average of 700 million branded Vingroup VinCity. Meanwhile, the recent “pioneers” Ecopark still hard, steadily sell an apartment complex phase every week after selling Aqua Bay “sold out” more than 2,000 apartments in the segment from the beginning of the year.
Vingroup involvement signed a “new wave” on the property market which the segment of apartments with competitive price and high quality. Not only VinGroup or Ecopark, there were many other brands attacking to this segment such as Him Lam, River City’s Phat Dat, apartments Opal chain (HCMC), Krista (City), FLC Garden (Hanoi)
This move shows that the largest real estate businesses are shifting, in the context of the supply of luxury apartments worth is said to be saturated high relative to demand.
Many real estate experts believe that this was the right and reasonable trend of real estate developers. Since potential and demand in this segment is a very big stage while urbanization are increasing.
According to the Ministry of Construction, since 2017 about 70% of the market needs to focus on housing segment of average or lower prices. Many market research firms such as Nielsen forecasts middle class in Vietnam could be accounted for half of the population in 2030. This is the basement for many real estate companies to ensure that housing demand will remain very large in next time.
However, It is not easy to be diverted by this product line is not high profit margins, requiring businesses to obtain extensive land, synchronized planning, infrastructure formidable enough to give future residents of the service “standards”, but apartment prices remain “soft”, in line with the majority of home buyers with low income to moderate.
In fact, the market is only counted on the fingers of the developers of this product line. In particular, the large enterprises as Vingroup or Ecopark has the advantage, because they have land, experience and strong potential.
In the north, this trend is most evident in the Ecopark. For two early months in 2016, they have sold 2,000 apartments in the project segment West Bay, even buyer also have to queue all night to have any chance of ownership, Ecopark continue to sell out more 3000 apartments Aqua Bay and over 800 were successful transactions.
According to the interpretation of Nguyen Dung Minh, Deputy CEO Vihajico, project investors, Ecopark pioneer in this segment because of most people, especially young families with 5 star housing needs but limited financial capacity. Thus, the apartments Ecopark were out of stock right after selling out since the reasonable price of below 1 billion dong touched this demand.
To reach that target, Mr Minh argued that Ecopark with the advange of fund of land developed in suburban. West Bay apartment project and Aqua Bay are built on the foundation of infrastructure, facilities and services of the Ecopark closed, at the same time as the special product is almost impossible to find in any other project on this time the market so people rushed to buy into is quite understandable.
VinGroup recent moves show that the group began targeting this model. By the revelations of Mr. Le Khac Hiep, Deputy Chairman of the VinCity Vingroup will be developed in the districts, suburban districts and localities adjacent Hanoi or Ho Chi Minh City, the formation of satellite towns, according his agreement to reduce pressure load center.
Mr Hiep also said that VinCity meets all the standards of value which confirmed through many past projects: Qualitified – synchronous – Utilities. That shows not Vingroup targeting affordable housing segment, which is directed to the product line “apartments of high quality, reasonable price”, it looks similar to the Ecopark.
The success of the luxury affordable apartments at Ecopark and navigation behavior of many real estate firms. There will be predicted to be a big change to real estate market in the next time. There will be many well – known investor which also reduce the area of apartments, shifting investment towards the periphery.