The mid-end segment continues to be the most attractive in the real estate market.
Nearly 500 mid-end apartments in the Ehome 4 project of the Nam Long Investment Corporation were sold in the first nine months of the year. Each apartment, which cost from VND450 million ($21,151), is suitable for stable middle income earners. The Ehome 4 project has completed the first two blocks (B1 and B2) already and construction of the roof on the last two blocks (C3, C4) continues and is expected to be finished in 2015.
According to Mr. Le Minh Khanh, Director of the PR and Sales and Marketing Department, the Ehome 4 project is based on the 3E criterion: economy, ecology, and efficiency. Despite their small area, each apartment is carefully designed to maximize their utility value. The investor has focused on building a green living environment, with gardens, a swimming pool, basketball courts, and schools. The aim of project is for users to always be able to enjoy a convenient life.
Ehome 4 is located in Vinh Phu commune, Thuan An district in Binh Duong province, which has favorable transport links and bustling trade. Buyers can access many services such as international hospitals, schools, markets, supermarkets and parks. Moreover, Ehome 4 is part of the government’s credit housing support package, worth VND30 trillion ($1.4 billion), to help low-income earners secure housing. Purchasers will therefore be able to obtain a loan and need only pay a maximum of VND4 million ($118) per month to own an apartment.
Nam Long is just one of many property developers to have poured money into the mid-end real estate segment, with Dat Lanh Co. and Hung Thinh Corp having also made investments. At around VND1 billion ($47,004), their apartments have attracted a great deal of interest. With the government’s support, the number of people buying mid-end apartments is on the increase. While transactions are quiet in the luxury real estate segment, the mid-end segment has been vibrant. According to a report from Savills, more than 3,280 apartments were sold in Q3, 2014 in Ho Chi Minh City, up 29 per cent quarter-on-quarter and 85 per cent year-on-year, which is the highest volume since Q4, 2010. Nearly 70 per cent of this transaction volume has been in mid-end apartments.
Mr. Nguyen Van Duc, Deputy Chairman of the Ho Chi Minh Real Estate Association, said that out of 30 property projects sold there are 20 in the mid-end segment and only ten in the luxury segment. Mr. Tran Kim Chung, Deputy Director of the Central Institute of Economic Management, said the mid-end segment will play an important role in clearing the backlog in the real estate market from now to the end of the year. Due to housing demand increasing quickly and affordable apartments being suitable for most Vietnamese workers, the mid-end segment will continue to lead in terms of property transactions into the future.