Apartment sales expected to grow in 2017
Apartment sales are expected to increase by up to 8-10 percent this year as developers offer more payment options for buyers, according to a leading real estate agent.
Director of Rentsbuy.com, Mr Houmphan Sayalath, said some apartment developers and house vendors were offering different payment options such as instalments to lure more purchasers.
Mr Houmphan explained the market was also being affected by increasing purchasing power along with continuing migration to the capital from the provinces.
Vientiane residents in general have stable incomes, which will be one of the main driving forces for growing apartment and residential homes sales.
The Asean Economic Community will also drive real estate construction, especially of apartments and condominiums, through more investment flowing into Laos.
There are more than 200 apartment developments in Vientiane and Mr Houmphan expected apartment construction to continue growing at 15 percent this year.
This will help to drive apartment prices lower as developers will use a variety of pricing strategies to attract customers.
Accordingly, apartment rents in Vientiane were expected to decrease by around 5 percent this year with m ore developments to serve the market.
Meanwhile, house and office rents would remain steady but are forecast to slow at the end of this year due to increasing competition in the market.
Mr Houmphan stressed that overall Vientiane real estate construction would grow this year as several large-scale projects by Chinese developer s were in full swing.
For example, Vientiane New World, World Trade Centre, Sky City, and the That Luang Marsh Special Economic Zone with 18 condominiums are all under construction.
Mr Houmphan said house construction for rent or sale would grow only slightly as this market mainly focused on local residents.
However, he estimated that construction of residential houses and apartments would extend into the capital's suburbs in line with the government's decentralisation efforts.
This will mean apartment and house prices in these areas would continue to be lower than in the city centre.