Low-cost residential buildings on the outskirts of HCM City. More property developers are focusing on low-cost housing in a bid to reinvigorate the property market. — VNA/VNS Photo Tuan AnhA growing number of domestic real estate developers in HCM City are focusing on the low-cost housing sector in an attempt to better survive during the current period of reduced property activity.

Thu Duc Housing Development Corp chairman and general director Le Chi Hieu said this year the company would tailor affordable apartments to cater for growing demand amongst workers.

Current, the company was offering apartments priced at VND16-17 million (US$762-810) per square metre and similar new products priced even lower would be available soon, Hieu said.

Following this trend, Hoang Anh Housing Development and Construction (HAGL Land) general director Le Hung said his company planned to sell new affordable apartments in the second half of the year.

Housing project apartments in the city's Tan Phu District would be sold at VND13 million ($620) per square metre while at two other projects in District 7, the price would be at VND20-22 million ($950-1.050) per square metre.

"Unlike our current products, new apartments will be smaller with an average area of 70sq.m," Hung said, adding that loans up to 70 per cent of property value would be offered.

In order to earn revenue amid a slump in the apartment market, new and different products must be created and introduced to the market, he said.

Meanwhile, the Phat Dat Real Estate Company has chosen another path. Board chairman Nguyen Van Dat said his company would begin developing Everich Apartment 3, with lower prices in District 7.

Everich Apartments 1 and 2 are now sold at VND25-35.5 million ($1,190-1,690) per square metre.

"We will offer unfurnished flats at compettive prices compared to those in the same area. After that, clients will be able to decorate flats themselves, based on their financial capacities," Dat explained.

Despite the current economic slump, Dat said he still believed quality products with reasonable prices would surely find clients.

This year and 2013 would see real estate developers increase efforts to develop new products and new business opportunities ahead of the expected market recovered in 2014-15, he said.

Real estate businesses who had decided to renew their product structures would create a positive conditions for this year, said ACB Real Estate Co general director Pham Van Hai.

While luxury apartment segments were sluggish due to capital shortages and difficulties in finding clients, medium-priced and low-cost apartments could be a bright spot for the market as this group would address a thirst for housing from those with a steady income, he concluded.

Source: VNS