CBRE: Luxury apartment supply surges
Supply of high-end apartments in Vietnam has grown sharply in recent years but that of condos for low- and medium-income earners has contracted despite huge demand, according to property services provider CB Richard Ellis Vietnam (CBRE).
CBRE provided figures about apartment supplies in different segments at a seminar on the domestic property market and opportunities for real estate stocks organized by the Ho Chi Minh City Stock Exchange (HOSE) recently.
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 Ho Chi Minh City 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 Ho Chi Minh City and 4% to 29% in Hanoi in the same period.
The total supply of new apartments in Ho Chi Minh City 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.