Capital Apartment Prices, Rents to Ease Next Year
Apartment sales prices and rents in Vientiane are expected to decrease by around 5 percent next year as more developments come onto the market, according to a leading operator in the sector.
Prices for apartments will remain the same until the end of the year while major developments are under construction, according to Director of real estate agent Rentsbuy.com, Mr. Houmphan Saiyalath.
Mr. Houmphan added that rents for apartments, houses and offices were still steady but they too would ease over the next two years through higher competition in the residential and commercial property markets.
He expected the ASEAN Economic Community was helping encourage property construction, especially in apartments and condominiums with investment flowing into Laos.
Many apartment blocks can be seen being built around Vientiane and this is expected to expand even further next year.
The added market supply will help drive apartment prices lower as developers use a variety pricing structures to attract customers.
According to Mr. Houmphan construction growth in Vientiane would double to 10 percent compared to the previous 5 percent.
At present there are numerous large projects underway or that have been restarted by Chinese developers including Vientiane New World, World Trade Centre, Sky City, and That Luang Marsh Special Economic Zone with its 18 condominium towers.
While apartment and condominium construction continues to boom individual house construction for rent or sale is also growing but more slowly as its major market is local residents, Mr. Houmphan explained.
However, he estimated that house and apartment construction would continue in the capital’s suburbs as the government decentralised and relocated offices away from the CBD and this would offer better value for buyers in these areas.
Source: Vientiane Times