Mid-scale real estate and its potential for sustainable development
Even when the adverse impacts of the pandemic created unexpected changes in the forecasts about property market scenarios, the mid-scale real estate segment still plays a leading role and still records good liquidity. Many experts believe that, as the urbanisation process speeds up, the population scale gets bigger and bigger, the demand for mid-range real estate will increase even more.
The mid-scale real estate retains its dominant role in the market
According to a report by the General Statistics Office, Vietnam is at the prime stage of a demographic golden age as 69% of the total population is in the working age. The Vietnamese income per capita in the 2016 – 2020 period increased by an average of 8.2% per annual. Demand for mid-scale housing is forecasted to continue the uptrend, opening great opportunities to dominate the market.
Sharing the same opinion, real estate experts believe that the demand for mid-scale properties will accumulate over time since the number of young households increases. The reason is that the price range of this segment suits the financial ability of a wide range of customer groups. Despite the appearance of upscale and luxury properties gradually becoming more popular in recent years, the mid-scale segment remains welcomed as it helps the “settle-down” dream of the majority of residents come true.
The industry commentators cited that in the past three years, the number of mid-scale properties accounted for more than half of the supply in the market and recorded a good absorption rate. For instance, according to the real estate market report issued by the Vietnam Association of Real Estate Brokers (VARS) in the second quarter of 2021, mid-end apartments are the product line with the best absorption rate, over 70% in big cities like Hanoi and Ho Chi Minh City.
“According to data recorded from batdongsan.com.vn, mid-range housing receives the most interest”, Mr Nguyen Quoc Anh, Deputy General Director of the popular website batdongsan.com.vn said. He stressed that mid-range properties would lead the market.
The Van Phu new urban area, Ha Dong district of investor Van Phu – Invest, can be an example for the above statement. From a rice field of the old Ha Dong, the investor made a bold step in creating a modern and prosperous urban area in the Japanese style, changing the face of the Ha Dong district. With a reasonable price, beautiful and modern-looking design, various facilities, the project attracted great attention of customers right on its launching day. As a result, the first product of Van Phu – Invest immediately created a buzz, helping this investor build a reputation in the market even during the real estate recession. Now, after nearly half a decade of development, Van Phu new urban area has become the ideal home for thousands of residents, where all living experiences are fully met.
When the mid-range real estate “upgrade”
The standard of living increasing higher leading to the changes in the yardstick of products in the mid-scale segment. As a result, the real estate developers must invest more meticulously into their “child”. Besides the common factors such as good location, diverse facilities, customers now place more attention on smart design, fine-looking, green and clean living space, meeting the needs of settlement amidst the hustle and bustle of daily life.
Among that, smart design is considered the signature of each project. Instead of “mass production” using the same mould, projects with distinctive features from the exterior appearance to the interior design will quickly make an impression for customers when introduced to the market.
“For each design to carry something new and relevant with times, our team of architects is constantly updating new trends but still ensuring minimalism, modernity, timeless design, combined with carefully studying the needs and tastes of customers. We produce suitable designs flexibly applied to each project,” stressed the representative of real estate developer Van Phu – Invest.
Besides, mid-range real estate needs to create a fresh close-to-nature living environment. After the impact of the Covid-19 epidemic, the customers are more and more interested in green and airy space at the residence than ever.
One essential factor that makes a real estate product competitive is the synchronous internal and external utilities capable of meeting the practical living needs of the community. The variety of utilities is directly proportional to the value of the property. The project offers adequate facilities will promise a better occupancy rate than conventional projects.
Van Phu – Invest is one of the few mid-range real estate developers pioneering in creating different living values for residents. “I appreciate the way Van Phu – Invest develops and operates the project. Instead of just providing many utilities, they go into an in-depth study of each utility, thereby bringing customers a more convenient, comfortable and relaxing life. In the communal areas, the investor put a lot of effort into the collection and display of intriguing contemporary artworks, set in an open, close-to-nature green space” said Mr Nguyen Hoang Nam, a resident living in Van Phu New Urban Area, Ha Dong District.
Throughout its nearly 20-year development journey, Van Phu – Invest constantly strives to develop and improve product value over time. Typically, Vlasta – the midscale product line of Van Phu – Invest – has good construction quality, smart design, a modern living environment, various utilities, but its price range is much lower than similar real estate products. The product value is also further demonstrated in the “collection” of utilities that are rich in personal experiences with novel and unique designs in the Upscale (The Terra) and Luxury (Grandeur Palace) product lines of the investor, helping Van Phu – Invest increase its competitive advantage in the market.
