Apartment, house rents to keep increasing: agent
Apartment and house rents are expected to grow by 5-10 percent into the future in Vientiane, according to a leading real estate agent.
Director of real estate agency Rentsbuy.com, Mr Houmphan Salyalath suggested that rents for apartments, houses and offices will increase over the next two years after Asean Economic Community (AEC) integration.
He believed the AEC would attract more investment inflows into Laos which would result in increased real estate project construction.
Growth in real estate construction for Vientiane was expected to double this year to around 10 percent compared to approximately 5 percent last year.
At present, several large scale projects from Chinese developers have also recommenced work.
For example, projects such Vientiane New World, Vientiane Centre, Lao World, Latsavong Plaza, Sky City, and That Luang Marsh Special Economic zone with construction 18 condominiums, appear to be running smoothly.
According to Mr Houmphan the main projects were focusing on foreign investors and housing foreign administrative or banking staff and NGO experts.
“Even through, there is more real estate construction, the rental fees will still increase for many years to come,” he expected.
However, Mr Houmphan explained that while investment in apartments and condominiums was booming, house construction for rent or sale was also increasing as it focused on local residents.
Real estate investment in the capital's centre is now reaching a peak, with infrastructure development switching to the suburbs as the government decentralised to outside the CBD.
He estimated this would push more real estate investment to the suburbs as some state officials living in the city would relocate to houses or apartments near their offices.