The prices of mini apartments in Hanoi has surged after a decisionto grant ownership titles to individual small apartments.
The decision was meant to help low-income families to buy their firstproperty, but demand increased dramatically after the decision, withhome buyers and investors attracted to the prospect of capital gains,analysts said.
Also, mini apartment sales don't have to go through a property transaction centre.
To qualify as mini apartments, there must be at least two floors to thebuilding with two or more apartments measuring at least 30sq.m on eachfloor.
"Demand for mini apartments increased by 40percent and the price increased by about 20 percent,"www.batdongsan.com.vn director Le Xuan Truong said.
Prices were now between 750 million VND (39,000 USD) to 1.2 billion VND (60,000 USD), Truong said.
Each apartment could bring the developer a profit of between 150million VND (7,800 USD) and 200 million VND (10,000 USD)," he said.
The high demand has attracted investment from small developers.
Developer Dinh The Toan said he built a five-floor mini apartmentbuilding with 12 apartments on an area of 150sq.m. After the decisionwas released, the apartments increased in value by 300 million VND(15,000 USD) to around 900 million VND (45,000 USD) each.
Quang Minh Construction and Investment Joint Stock Company spent 10billion VND (526,000 USD) to buy 200sq.m of in Cau Giay district tobuild 20 apartments.
We predicted demand would increase and we have not been disappointed, the company's marketing director Pham Manh Duong said.
Former deputy minister of Natural Resources and Environment Dang HungVo said the decision may relieve the accommodation shortage and providean opportunity for low income families, but we may live to regret it.
He said such high-density living down small lanes was not accompaniedby the development of extra infrastructure, such as water, electricity,sewerage, roading, extra schools, medical centres and open spaces.
They may turn into slums or ghettos in the future, Truong said./.
The decision was meant to help low-income families to buy their firstproperty, but demand increased dramatically after the decision, withhome buyers and investors attracted to the prospect of capital gains,analysts said.
Also, mini apartment sales don't have to go through a property transaction centre.
To qualify as mini apartments, there must be at least two floors to thebuilding with two or more apartments measuring at least 30sq.m on eachfloor.
"Demand for mini apartments increased by 40percent and the price increased by about 20 percent,"www.batdongsan.com.vn director Le Xuan Truong said.
Prices were now between 750 million VND (39,000 USD) to 1.2 billion VND (60,000 USD), Truong said.
Each apartment could bring the developer a profit of between 150million VND (7,800 USD) and 200 million VND (10,000 USD)," he said.
The high demand has attracted investment from small developers.
Developer Dinh The Toan said he built a five-floor mini apartmentbuilding with 12 apartments on an area of 150sq.m. After the decisionwas released, the apartments increased in value by 300 million VND(15,000 USD) to around 900 million VND (45,000 USD) each.
Quang Minh Construction and Investment Joint Stock Company spent 10billion VND (526,000 USD) to buy 200sq.m of in Cau Giay district tobuild 20 apartments.
We predicted demand would increase and we have not been disappointed, the company's marketing director Pham Manh Duong said.
Former deputy minister of Natural Resources and Environment Dang HungVo said the decision may relieve the accommodation shortage and providean opportunity for low income families, but we may live to regret it.
He said such high-density living down small lanes was not accompaniedby the development of extra infrastructure, such as water, electricity,sewerage, roading, extra schools, medical centres and open spaces.
They may turn into slums or ghettos in the future, Truong said./.
