Apartment prices, rents may fall 5% in Vientiane
APARTMENT prices and rents in Vientiane are expected to fall by about 5 per cent next year as more developments come onto the market, according to a leading operator in the industry.
Vientiane has seen a boom in apartment construction.
Prices for apartments will remain the same this year while major projects are under construction, according to director of real estate agent Rentsbuy.com, Houmphan Saiyalath.
Rents for apartments, houses and offices were still steady but would ease over the next two years through higher competition in the residential and commercial property markets.
The Asean Economic Community was helping to encourage construction, especially of 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 of pricing structures to attract customers.
Construction growth in Vientiane would double to 10 per cent.
There are numerous large projects underway or restarted by Chinese developers including Vientiane New World, World Trade Centre, Sky City and the That Luang Marsh Special Economic Zone with its 18 condo towers.
While apartment and condo construction continues to boom, individual house construction for rent or sale is also growing but more slowly as its major market is local residents.
However, house and apartment construction would continue in the capital’s suburbs as the government decentralised and relocated offices away from the central business district.
This would offer better value for buyers in these areas, he added.
