Boom in medium, low-cost apartments

HCM CITY — More property investors are pouring money into low and medium-priced apartments as city residents are increasingly reluctant to take out loans to buy houses.

"The buyers are the main factor affecting the apartment segment, and investors are trending toward buying low-and medium – priced apartments that have a more normal income level," said Pham Thanh Hung, deputy general director of The Ky (Century) Joint-Stock Company.

More purchasing power was available for low – and medium-priced apartments in late 2009, and has continued this year.

By the end of January, all of the Belleza Phu My apartments in District 7 will come onto the market at a rate of VND17-18.5 million per square metre, according to Belleza Phu My’s co-investor Sacomreal.

Binh Tan District’s Le Thanh apartment sells for one square metre at VND10.9 million; Tan Phu District’s 584 Lilama SHB at VND13-13.9 million; District 7’s Ngoc Lan at 15.7 million; and Thu Duc District’s Newtown Apartment at VND13.0-16 million.

A study conducted by VietRees shows that ongoing projects would provide 8,500 apartments this year and another 10,000-15,000 in 2011, with the number of low – and medium-priced apartments at least four times higher than in 2008.

Most investors are optimistic about the low-and medium-priced apartment segment over the next two years, saying that estimated demand could increase to a further 75,000 within that time. — VNS