Eye-catching segment of low cost apartments draws big brands

By Nga Vu - Jul 24, 2017 | 05:28 PM GMT+7

TheLEADERAfter Vingroup, Muong Thanh Group and Him Lam Land, FLC Group announces to involve in low- cost apartments.

Eye-catching segment of low cost apartments draws big brands
Low cost apartments in dire shortage to serve mass buyers. Photo: Internet

Huong Tran Kieu Dung, deputy chairwoman of FLC Group, confirmed on July 21, 2017 a plan to build 15,000 low-cost apartments priced from VND400-500 million in the near future.

According to the reports of Savills and Vietnam Real Estate Association (VNREA), the segments of low-cost and affordable apartments are still in shortage. While supply exceeds the demand for high-class apartments, the demand for low-cost apartments has not been satisfied yet.

Muong Thanh - one of the first private group has developed a series of low-cost housing projects in a row such as Dai Thanh, Southwest Linh Dam and recently Thanh Ha Cienco with the price over VND10 million per square metre after its initial success of the first low-cost housing project, named Xa La Urban Area.

Most of this Group’s low-cost housing projects have attracted a lot of public attention because they satisfy with the demand of the customers.

Recognizing Muong Thanh Group’s success in this segment, Vingroup and Him Lam Land, etc. ... also joined in this segmentation.

On December 03, 2016, Vingroup announced its strategy to join the low-cost apartment segment with plan to build 200,000-300,000 VinCity apartments with areas from ​​23m2 - 90m2/apartment at an average selling price from VND13 - 19 million per square metre.

This group expects to expand simultaneously its VinCity trademark in seven provinces and cities including Hung Yen, Thanh Hoa and Ha Tinh provinces and Ha Noi, Hai Phong, NhaTrang and Ho Chi Minh cities.

In Ho Chi Minh City, Him Lam Land - one of the investors specializing in high-class apartment trading, has recently carried out more affordable housing projects. The Corporation also introduces the Him Lam Phu Dong project (Thu Duc district in HoChiMinh City) at an estimated selling price from VND1-1.2 billion/apartment and plans to provide at least 2,000 low-cost apartments in the future ...

“The demand for real estate priced from VND400-500 million is very high; however, such products are either rare or unavailable on the market,” Dung said.

“FLC Group is promoting fastest procedures to implement the construction of small low-cost apartments with average areas from ​​25-50 m2, priced from VND400-500 million,” she added.

“As planned, FLC will carry out the project in Hanoi city, Thanh Hoa, Binh Dinh, Thai Binh, Quang Ninh provinces, etc.,” Dung said.

To facilitate the project, FLC also proposed the Government to soon complete the regulations, specifications, standards, and procedures for granting red books (commonly known as ownership certificates) for small-sized apartments and at the same time offer policy to support low-cost apartment buyers on lending interest rates.

Thus, after the Vingroup, Muong Thanh and Him Lam Land that announced on construction of low-cost apartment in large scale, FLC’s participation in this segment is a good signal to the market and the low-income people’s belief in low-cost apartments is consolidated.