news center
HOUSING REVOLUTION IN VIETNAM (Part 1)
2016-11-02 09:33 AM

The Real Estate market is taking place the strictly selected and competed revolution. Investors are having difficulties in solving the housing and stock crisis, as customers wait for thedecreasing prices. Meanwhile, financial corporations and other related subjects are also degrading capital and waiting for the real estate to be recovered. Although the demands for the housing market are really great, moving from “demand” to “effective demand” is a hard journey. Investors must calculate the customer’s real demand carefully when deciding to invest in projects.

According to the evaluation of WB, Viet Nam has urbanized with the highest speed in South East Asia. With a general plan of developing the urbanization system in Viet Nam to reach a 32.3% urbanization rate in 2013 and to reach a 50% urbanization rate by 2025, Viet Nam needs to build more than 15 million square meters of housing every year, as well as the required development infrastructure and social services. According to the Housing Development of Ho Chi Minh City program, it reached the average of 14.3 square meters per person in 2010 and reached 17.5 square meters per person in 2011. Thus the housing demand has continued to increase, orienting the goals: the relative average area of housing per person, meeting the demands of resettlement in residential districts, also satisfying the demands of the growing population. 

 

nesthome

Social housing is the goal to orient in development strategy in Viet Nam

 (Nest Home 1 Project – Da Nang)

According to the CBRE of Viet Nam, there are still 21,000 available apartment stocks in Ha Noi and 18,000 apartment stocks in Ho Chi Minh City today. At this rate, a survey of VnExpress reports that 84.2% of the people will stop buying houses because the price will be decreased, and only 13.5% of the people will want to buy houses because they will think the price’s suitable. The purpose of buyers has changed from investing (17%) to staying and leasing (83%). The housing market has taken place with the supply and demand revolution, and the housing products need to meet the customer’s real demands.

Businesses are not in the real estate degrading capital in this area. They compete to decrease prices to release the housing stock, to quickly solve difficulties such as exchanging the housing products from staying to leasing, and the small apartments… The market research survey of consultant companies showed that the projects in good locations, satisfying the living demands, apartments at suitable prices are sold out. This is why businesses must invest in real estate in the future. They need to clearly survey the market and the customer’s real demands before deciding on investment, and simultaneously research construction technology applications to decrease the housing price but ensure quality. Cooperating with efficient and prestige construction consultant units, bidders will create efficient construction methods, and solve the input and output housing products of investors.

“Handong E&C is the first company in Vietnam to offer Design and Build, supporting the services. With purpose of connecting the disjointed activity chain in the investment and construction process, Handong E&C provides the total method from researching markets, calling for investment to cooperating with the efficient bidders in order to solve the quality of housing products which can be satisfied the market’s demand with the minimum cost in the given process area. We’d like to create the maximum value for investors in Vietnam”. This is the one of main strategies for housing revolution in Vietnam in the country’s economic development.

News: Handong E&C