Vientiane apartments to see slight dip in prices
Vientiane apartments to see slight dip in prices
The price of apartments in Vientiane is expected to have slightly decreased in the first three months of 2017 compared to the same period last year, say sector officials.
A property developer, Mr Sengmani, commented on the apartment market situation recently saying the Lao economy has experienced a slight slowdown in growth while there have been more developers, which has also driven prices down.
Last year, the economy grew at a rate of 6.9 percent, which fell short of the government’s target of 7.5 percent, according to the National Economic Report.
Nevertheless, this rate of growth is high compared to other countries in the region.
Economists also noted that fewer mega-projects have been proposed in recent months, which results in fewer buyers and renters and in turn means apartment prices fall.
However, Mr Sengmani believes the majority of apartment prices will still be the same as last year given that there are likely to be more development projects in the near future.
The prices of houses and office buildings are expected to remain steady but will begin to slow down next year, or over the next three years, because of more competition in the residence market, experts say.
The Asean Economic Community and the construction of the Laos-China railway should see booming construction in real estate ventures, especially apartments and condominiums, through other investments across the country.
According to a recent report from a local real estate agent, there are more than 200 apartments registered in Vientiane and it is expected that apartment construction will grow by 15 percent this year.
This will also help to drive apartment prices lower because developers will set up a variety of prices for their spaces to attract the biggest range of potential customers, the report suggests.
Managing Director of RentsBuy.com, Mr Houmphan Saiyalath, said real estate construction in Vientiane will look to double this year at a 10 percent increase compared to 5 percent growth last year.
At present, there are several giant projects by Chinese developers that have resumed work: the Vientiane New World project, the World Trade Centre, the Sky City project, and the That Luang Marsh Special Economic Zone with 18 condominium blocks, which are all currently under construction.
Mr Houmphan said investment in apartments and condominiums is booming but that the construction of houses for rent or sale has also gone up slightly as marketing has now focused on local residents.
