CBRE: LUXURY APARTMENT SUPPLY SURGES

Le Hoang Lan Nhu Ngoc, an executive of CBRE Vietnam, said apartment supplies have shifted noticeably in the past four years with a plunge in new units for medium-income people and a strong rise in luxury housing.

For instance, medium-cost apartments accounted 46% of the total supply in HCMC in 2012 but only 26% in the first nine months of this year. In Hanoi, the respective figures were 84% to 28%.

Meanwhile, the share of luxury apartments grew from 16% to 36% in HCMC and 4% to 29% in Hanoi in the same period.

The total supply of new apartments in HCMC and Hanoi next year is estimated at 50,000 and 24,000 units respectively, with luxury apartments making up a significant proportion.

Ngoc said the apartment segment will keep expanding and attracting more investment given positive impact of economic recovery and market policies.

Commenting on the performance of real estate firms in the coming time, chairman of Dat Xanh Group Luong Tri Thin said a potential real estate firm needs to have a lot of land available for new projects, strong finances and an effective business model.

Thin asked investors to carefully look into the history, development strategy and vision of real estate businesses before investing in them as well as the market segment they are focus on.

Source: The Saigon Times