Small flats to warm realty market: Horea
By Dinh Dung - The Saigon Times Daily
HCMC - The HCMC Real Estate Association (Horea) has proposed developing small apartments in an effort to stimulate demand for housing and help investors release thousands of unsold flats.
Le Hoang Chau, chairman of Horea, said the association had sent a petition to the Ministry of Construction asking for permission to let property developers build condos from 30-70 square meters.
Such flats will be offered to young families earning average incomes at a reasonable price of around VND500 million per unit, Chau noted.
According to Chau, the realty market in HCMC with an unbalanced development has failed to meet the growing need for housing while there are an abundance of large, expensive apartments.
In fact, related laws including the Housing Law and Decree 71 allow social housing projects to construct condos covering 30-60 square meters each unit.
It is also expected that developing small flats will save the industry players from the dilemma owing to weak consumption. However, this idea is not new to business owners.
Hung Gia Phuc Investment and Development Co. last year asked for permission to build 30-50 square meter flats. Similarly, Dat Lanh Real Estate Co., proposed constructing 20-30 square meter apartments in its scheme.
The idea has yet to get the go-ahead because there are still concerns over planning construction areas, population density and public benefits in these projects, which tend to become rat-holes in the sky.