HCM market of downtown apartment is getting hot in the wake of “waves” in huge demand. According to real estate experts, this demand came mainly from foreign investment wave, attracting a large number of foreign experts to work in or live in HCM City.
Early April 2016, Do Nhat Duy and his colleagues from Korea has examined a series of luxury apartment projects in the city centre area to find out 80 apartments for Korean professionals, engineers to hire in their coming to work. Duy said the group has conducted survey as for a lot of projects, but has not yet made an official decision.
“Rentals of these apartments are various, from 1,500-5,000 USD per month. However, the supply of apartments in this area is low; also, many lacks closed utilities and living space”, said Duy.
A member of this group, a senior South Korean shared, due their demand for long-term rent, he targeted the potential projects under construction. “We are investigating and will put priority on several projects with green parks, riverside location and run-through metro”, said he.
According to observers, the demand for rental apartments in District 1 mainly comes from foreign countries such as Japan, South Korea. Along the “Japanese quarter”, “South Korea quarter” in Le Thanh Ton and Ngo Van Nam Str., “South Korea office” in Ton Duc Thang Str., the demand for hunting luxury apartments for the personnel shift has been always “hot”. The number of foreign businesses investing in Vietnam is constantly increasing, as a result of the Vietnam’s joining the TPP and the other free trade agreements (FTA). Thanks to this fact, a large amount of high-level experts, engineers from foreign countries are pouring in Vietnam to live, work, creating a high growth in the demand for apartment rent.
Given this strong demand, some investors have seized opportunities by accelerating the supply of luxury apartments available to market.
During 2015 and the first three months of 2016, HCM City real estate market has recorded a very strong growth in all segments; market size is nearly twice as large as that in 2014. Particularly, the segment of luxury real estate has seen the highest growth, mainly for downtown, the East and South of the city. Specifically, according to Savills Vietnam, in Q1/2016, nearly 7,600 apartments from 17 new projects and 3 projects in operation have been made available to market.
According to Savills Vietnam, HCM City has been an attractive destination for international investors. The growth in foreign direct investment (FDI) along with the FTAs between Vietnam and Japan, Korea, the European Union and the United States, is expected to attract labours from these countries, causing the high demand for apartment rent. Currently, luxury apartments have seen the highest absorption rate, up to 23 percent.
Neil MacGregor, Savills Vietnam director general said: “In the wave of high-end apartments supplied to the market, the successful investors are those who grasp the needs of customers. Luxury real estate must ensure the following factors: projects must have open space, materials of high quality, outstanding design and favourable location”.
“The super luxury real estates are usually water-close, might be in riverside apartments – villas complex, ensuring privacy, tranquility and absolute security. They also must locate in the “gold” positions, be fully equipped with self-contained facilities to meet the expectations of the most sophisticated customers”, said Neil MacGregor.
Source: intellasia
Keyword : New wave, high-end, apartment rent, to come.
