Mr. Duong Duc Hien, Director of Savills Hanoi Housing Division, pointed out the five main trends of residential real estate in 2019, notably the mid-end segment is still the main segment of the market...
Intermediate is still the key segment of the market
According to Mr. Hien, high population growth, declining household size and rapid growth of the middle class are prerequisites for 2019 to continue to be considered the year of the mid-end apartment market.
In the five trends of housing development in 2019, the experts commented, notably, the mid-end segment is still the key segment of the market and the high-end segment with many positive prospects...
In addition, the products of townhouses, townhouses or near-convenience development products, social security will also attract customers with real needs.
The high-end segment has many positive prospects
In 2019, the high-end housing segment has many positive prospects due to the increasing demand for housing upgrading from better-off households. Besides, the investment demand of foreigners also increased strongly. Many recently launched high-end projects have completed quotas of 30% of foreigners buying houses right in the launch event.
While the demand for high-class housing is still quite large, the HCM City government has a policy of restricting the licensing of new urban projects, causing the supply to become limited. However, the approved development projects, in the plan will continue to be deployed and this will be an advantage for investors who are developing products in this segment.
According to Savills, the future supply of high-end housing will meet the demand if the investor's project implementation process is carried out smoothly.
The importance of geographical factors is declining
According to Mr. Hien, until now, the position of the project is still the top priority when choosing housing real estate. However, in the context of the developed market, the transport infrastructure is upgraded and optimized, the distance will no longer be a barrier for residents in the city.
On the other hand, customers also need to have a more open view of housing products, especially when buying for long-term investment. The disadvantage of today's position may be a premise for real estate to increase in the future when infrastructure develops. It is important for customers to have thorough research and inquiry.
Pure holiday products come back.
Mr. Hien said that the market no longer developed "hot" derivative products but is gradually returning to pure resort products. The nature of derivative real estate products is usually only trending. So over time, there are products that will be eliminated, there are also products that will change to suit the tastes, trends and development of the economy.
In the process of development, derivative real estate products also face many difficulties and obstacles, in which the biggest barrier is in the law. With new product lines, sometimes regulations and policies cannot keep up, so the legal framework for many derivative products is still unclear and consistent.
On the other hand, products are always the root of the real estate market, all human activities are associated with real estate: staying, working, doing business... So pure products will be the core core, never change of the market.
Adjusted in the model of sea resort real estate products
Mr. Duong Duc Hien said there are no new models expected to appear on the market. If so, it is likely that real estate products will be resorted to the marine market. Instead, existing products will be adjusted to better suit the needs of customers and the general trend of the world.
For example, narrowing the space of three-bedroom apartments in an area of 90 m2 has long revealed many shortcomings, which will gradually disappear in the market; or apartment design will expand balconies, loggia and windows in order to catch natural light; or the gradual commitment of profit in resort projects with re-leasing programs... These trends are expected to be more sustainable directions of the housing market.
According to Minh Thu