Lao real estate market booms
Lao real estate market booms
Demand for housing in Vientiane is expected to boom over the next few years creating new opportunities for developers, according to real estate firms.
Real estate managers are speculating growth in the housing market will take off when Laos becomes part of the Asean Economic Community in 2015 due to strong economic growth and a rising population.
“Demand for houses and offices in Vientiane has been growing and will continue to increase thanks to increasing population and economic growth,” Rent and Buy Company Managing Director, Mr Houmphan Sayalath, told Vientiane Times .
Mr Houmphan said the establishment of the Asean Economic Community in 2015 would see an influx of foreign investment and labour, which would increase demand for accommodation in Laos and in particular in Vientiane.
He said local and foreign real estate firms in Laos were expecting to make big profits as a re sult of the economic integration.
A number of businesses have purchased large areas of land in Vientiane, planning to resell or develop them for housing later. The price of land the city has risen sharply as demand has increased.
Other real estate firm managers said the increasing personal wealth of Vientiane citizens was causing higher demand for land and houses. The average per capita in Vientiane is now above US$3,000 and is expected to continue rising over the next five years, agents said.
One major residential development currently underway in Vientiane is Nonghaew village in Hatxaifong district. Developers are turning a 6ha area into housing for low and middle income owners.
Once finished the project area will have access to water, roads and electricity. It will also be protected by a security guard.
Buyers will be able to pay for their houses in installments over 10 or 30 years in a bid to attract middle-income earners. They will be able to pu t down a 50 million kip deposit then pay around 1.5 million kip each month for 30 years until they eventually own the property.
The project developer said almost all the houses had been occupied and the company was now looking to develop a second site in another village.
More and more Vientiane residents are becoming home owners as the average income in the city rises.
A civil servant now receives a salary of about 1.3 million kip each month and the government has promised to increase the salaries of state employees every year until 2015.
vientiane times
