City developers look to youths
City developers look to youths
Young buyers make up a promising segment for the HCM City real estate market because of the high rate of migration to the city and rapid urbanisation, a conference on the housing market heard on October 13.
Le Hoang Chau, chairman of the HCM City Real Estate Association, said young people earn high incomes and this would surely increase year after year.
People aged 19 to 46 account for nearly 58 per cent of the city's population.
There are three million people who have migrated to the city so far and more are coming in, many of them do not have housing yet.
Economist Dinh The Hien said HCM City attracted many skilled workers whose incomes are higher than elsewhere in the country.
"The number of people getting married is increasing, the number of migrants is rising and urbanisation is increasing pushing demand significantly up."
Many buy an apartment to live independently from their parents, others come to HCM City to study or work, and they also need housing, he said.
So there is great demand for improving or buying houses.
He said young people buy housing for three main purposes: living, saving and investing.
Developers and analysts told the conference that young people often buy apartments for around VND1 billion (US$48,000), 10-15km from District 1, and thus easily leased or sold.
"The most important thing is to buy an apartment at a place with convenient transportation facilities and from a good developer."
To capitalise on this segment, many real estate developers are building housing for young people at affordable prices.
Nearly a month ago Phu My Hung Development Corporation launched for the first time in its more than 20 years in Viet Nam a project outside its Phu My Hung City Centre.
The project, Saigon South Residences, is being built in Nha Be District targeting young customers who would like to live in a place with Phu My Hung's building and management standards but with more affordable prices.
Him Lam Land, also changing its business strategy this year, has announced it will focus on this segment.
The company will bring 2,000 apartments into the market this year.
Ngo Quang Phuc, its deputy general director, said: "All the apartments will be priced at VND1-1.5 billion. They are located on Pham Van Dong, Ha Noi Highway, Song Hanh and Vo Van Kiet Boulevard.
"We decided to expand this segment because young customers have actual need [for housing] demand and are knowledgeable and skilled [and will earn plenty of money]," Phuc said.
Other companies like Nam Long have also launched many projects, including Dream Home Palace, to meet demand from this segment.
According to developers, though prices are lower, the quality of apartments coming into the market is good with full facilities including pools, gymnasiums and playing yards besides good management and security.
The competition in the market is tough now and customers stand to benefit from this, Phuc said.
