"Now I'm feeling discouraged."

There are many ways to enter the real estate market, so why did you choose the affordable housing segment?

No one in business wants to sell their products cheaply. But I only want to build affordable houses. Because I think that if you want to succeed, you have to create products that many people can use, people who have a real need for housing. In our country, the majority of people are poor; where would you find many rich people? So, building houses to serve middle-income and poor people, selling them at affordable prices, is a very worthwhile thing to do, isn't it? However, there are many types of affordable houses. Only those who actually live in them can truly appreciate the quality of the houses I build (of course, compared to other apartments at a similar price).

Everyone knows that selling houses at low prices attracts many buyers. But not everyone can bring the cost down. I have some friends who work in real estate, and they say that if Mr. Thản sells houses at 9.5 million VND/m2, he will definitely lose money. So, what is his secret?

To build affordable housing, the implementation process and the management team are crucial; the system must be streamlined and not cumbersome; it should save on both materials and labor costs.

Furthermore, the construction process needs to be shortened by applying modern technology. Previously, building an 18-story building took 3 years, but now it only takes 9 months, like the building you are sitting in right now.

Another factor in building affordable housing is trying to mobilize all sources of capital except bank loans to reduce costs, as bank interest costs account for nearly 20% of the product's price.

Finally, calculate a reasonable selling price, don't make too much profit. In business, you have to know how to share, because when you sell a product at a low price but with decent quality, the liquidity is very high. In fact, nearly 4,000 apartments in the Thanh Ha urban area, priced at 9.5 million VND/m2, were sold out in just 3 months.

Currently, most developers participating in the real estate market choose the mid-range and high-end segments, with very few choosing the affordable segment. From an investor's perspective, is it more profitable for developers to build affordable or high-end housing?

This depends on many factors, including the developer themselves. If the developer is a publicly traded company, they need to undertake high-value projects to secure funding from banks and the stock market. That's what's important to them; liquidity is "another story."

In reality, there are high-priced apartment projects that were completed more than 10 years ago, but many apartments remain unsold. If sales are slow, capital will be tied up and not circulate, which will not only harm the developer but also affect related partners.

Choosing affordable housing, like I did, meets real needs; homebuyers have a place to live, while I have capital to reinvest in other projects.

Mr. Thản received us, but the door to his office was wide open, not closed. He believes that selling affordable housing to the poor shouldn't be done formally, but rather with approachability. If buyers need his answers to questions about the apartment or project, he will personally provide detailed explanations. "What buyers need most is trust. If you don't trust yourself, who will?" This is why his office is never closed, and he never refuses anyone who wants to meet him or ask questions about his apartments or projects.

When you entered the real estate field and chose the affordable housing segment, did you conduct any research on social needs?

Yes, absolutely. I've been doing research since 1999, when the CT9 complex in Linh Dam was under construction. The demand for affordable housing in society in general, and in Hanoi in particular, was enormous.

As a real estate professional, what policy recommendations do you have to make housing more affordable and accessible to the average person?

I am applying to the Hanoi city government to build social housing at a price of 6 million VND/m2. If approved, I commit to building 10,000 apartments and selling them at 6 million VND/m2, but the proposal has been submitted a year ago and has still not been approved.

I think the important thing is whether policymakers want to do it or not, because it's very difficult for businesses to make proposals and suggestions. Personally, I can only try my best to do as much as I can.

I think affordable housing is suitable for most people. For example, in the Thanh Ha urban area, as I mentioned above, all 4,000 apartments were sold in just 3 months. Many middle-income families sold their houses in the city center and bought two apartments here, one for the couple and their children, and one for their parents, and still had enough money to buy a car to commute to work in the city center. The roads are also convenient now, so living a little further away isn't a problem.

Source: https://danviet.vn/dai-gia-dieu-cay-le-thanh-than-gio-toi-thay-nan-roi-7777838103.htm