According to Lao Dong Newspaper reporters on the morning of October 29, some real estate projects in Vinh City (Nghe An) despite having very prime locations and eye-catching construction, have been inaugurated for a long time but a series of adjacent apartments and shophouses are still closed.
Mr. Le Hong Anh - a real estate expert in Nghe An said: "The townhouse segment has many limitations such as high prices (over tens of billions of VND/unit), limited frontage space, inconvenient for living and difficult for business. The apartments are built according to available designs, so they cannot meet the diverse needs of customers.
This segment is inconvenient to use and the investment has low profitability, so customers should consider carefully when buying townhouses.
The sluggish sales of townhouses make it difficult for real estate project investors to spend large amounts of money on investments but cannot recover to balance cash flow.
Meanwhile, the apartment market in Vinh City is reaching a new peak. Apartment prices are rising, reaching 20-30 million/m2 in prime locations, but there is no inventory for sale.
According to a representative of Nghe An Department of Construction, the reason for the increase in apartment prices is that in recent years, the province has stopped granting new licenses for apartment construction projects in the inner city of Vinh city to avoid infrastructure overload.
On the other hand, young people today often choose to buy apartments to meet the need for quick, convenient, secure, and clean housing.
While supply is decreasing, land prices are too high, making it inaccessible to middle-income people, thus apartment prices are increasing.
In some areas near Vinh City, land prices are also being bought and sold busily with high prices.
In Nghi Phong commune (Nghi Loc district), a locality bordering Vinh city, in the auction of 114 land lots held on September 25, more than 1,600 people participated, the winning bid was pushed to a record high, with the highest recorded price being 17 million VND/m2.
The above situation exists because people are concerned about the scarcity of land, while Nghi Phong commune has a plan to merge into Vinh city.
Buying land for use or investment is convenient, with high liquidity and good profitability.
