Gia Phu Cooperative and National Housing Organization have said they will not use funds from the State Budget to build condominiums for low income earners.
The condominiums will be sold to members of the cooperative and low income people in Ho Chi Minh City. Thanh Loc or First Home Condominium is located in Thanh Loc Ward in District 12 and comprises of 14 floors and one basement over a 5,000 square meter area and will cost VND202 billion (US$ 9.5 million).
This condominium is built to South Korean standards with each apartment covering from 43 to 61 square meters at a cost from VND380-600 million (US$ 18,000-28,247).
As per schedule, the project will be built within 24 months and construction will start on July 26.
In related news, CB Richard Ellis (Vietnam), the world’s largest commercial real estate firm, said price of apartments in Hanoi continues to drop. They said that 80 percent projects in the realty market are low-income housing projects with average price of less than US$1,000 per square meter, while the figure in 2011 was 20 percent.
CBRE said most buyers are very cautious and in wait-and-see mode. CBRE forecasts that in future, projects will be priced at VND15-20 million per square meter, which will sell well.
