Nha Trang real estate market is overheating with resort segment. However, the segment of social housing for low-income people is seriously lacking, and it seems to be the project owner are a little bit neglecting it.
Huge demand for cheap houses
According to a report from Vietnam real estate news, the current demand for housing for low-income people in the city of Nha Trang is quite high, about 4,000 cases. The main reason is that laborers working in neighboring provinces, who work in hotel buildings, resorts in Nha Trang, are constantly increasing, but most of these laborers do not have houses, or cannot afford to own a house in the city.
According to a survey of real estate market in Vietnam reporters, the number of social housing projects in Nha Trang is extremely low. Due to many different reasons such as legal procedures, capital has many obstacles, so most projects are in slow progress.
These include: An Thinh Apartment Building (Khanh Hoa Housing Development One Member Limited Liability Company), Nha Trang Railway Apartment Building (Phu Khanh Railways One Member Limited Liability Company) 50 Le Hong Phong apartment building (Thien Nam real estate service company) and social housing – North Vinh Hai residential area Military investment).
An enterprise of Nha Trang real estate (anonymously) shared that, the reason for investors not willing to build social houses due to low profit margin, enterprises can not decide the price, it has to follow a ceiling price, which is approved by the local government, so the business can not be proactive investment strategy. Since then, they have to focus on luxury building for better return on investment.
Need a pioneering enterprise
In 2017, the People’s Committee of Khanh Hoa province has taken measures such as approving the sale, arrangement of apartment policy, apartments for sale by price to preserve capital for more than 600 policy households, officials, workers, employees and laborers at agencies and units, who are receiving salaries from the State budget. Provincial People’s Committee also plans to have more than 88ha land fund to call for investment in the direction of socialization and initially received the attention of some investors, even foreigners, who want buying real estate in Vietnam.
As a pioneer enterprise under the investment policy of the province, according to sources of reporter from Business Forum, it is expected in January 2018, PH Investment Corporation will officially start construction of three towers , each with a basement of 26 floors to add to the Nha Trang real estate market. Designed by the Ministry of Construction, the project will provide approximately 1,400 apartments. This is considered as a large and beautiful social housing project in Nha Trang city up to the present time. The project is also located on the golden land in the center of Nha Trang city with 4 main streets and near the sea.
Mr.Tran Anh Tai, PH Group Chairman, said: “With PH Complex Nha Trang, we will change people’s mind about affordable housing by providing people with the most convenient services”
However, one of the biggest obstacles of the Government as well as people today is that, the house price is too high compared with the income of people. The average price of apartments for low-income people in Nha Trang is about 13 million Vietnam Dong per m2, equivalent to about 800 million Vietnam Dong per unit.
Talking to reporters about the price, Mr. Tai said, the apartment price, which will be fluctuated by his business, is around 11 million Vietnam Dong per m2. At this price, people will enjoy the utility services such as luxury apartments with swimming pool, walking garden, cafe, restaurant, nursery, gym room, business center, shophouse. It is expected that the project will be put into use after 30 months of construction.
According to experts of real estate market in Vietnam, with the current explosive rate, only in a few years ahead, high-end apartment market, condotel will be redundant and the consequences will be very difficult to solve.
In 2018 and the following years, housing project developers need to re-invent the housing investment strategy accordingly and target low-income customers. Only with this way, the investors of Nha Trang real estate can stay in this fierce market.
Thang Tran – Mogi.vn
