Office-tels tipped to top HCMC market
Office-tels tipped to top HCMC market
Office-tel developments, which combine residential and commercial uses in one apartment, are mushrooming in HCM City and are expected to lead the market in future.
Le Hoang Chau, chairman of the HCM City Real Estate Association, said many developers were now investing in office-tel projects unlike a few years ago, indicating the segment's popularity.
A broker from Khai Hoan Land, who asked not to be named, told Viet Nam News, "There are around 30 office-tel projects in HCM City belonging to big companies like Novaland, Vingroup and Thao Dien."
This year demand had risen six-fold, he said.
They were being built in many districts around the city and some of the key projects are Wilton Tower, The Sun Avenue, Golden Mansion, Garden Gate, Kingston Residence and Sky Centre, he said.
Bui Huu Phuc, investment and development director of Novaland, said though it was a new product, it would soon lead the market thanks to low cost and high returns and the increasing demand for office space.
At a lease rate of US$20 per square metre office-tel fetches returns of 8-12 per cent, and this would rise especially when the economy benefits from the Trans-Pacific Partnership, he said.
Since 2014 his company had developed 10 projects with 5-10 per cent office-tel units and received positive feedback from customers.
The product had the best liquidity, he claimed, saying it was the most popular on his company's transaction floor.
Office-tel units enable occupants to live and work in the same apartment, usually a studio apartment that is smaller and about 10-15 per cent cheaper than normal ones.
Offering facilities for both working and living, it is suitable for start-ups without much liquidity, foreign companies and individuals who set up shop in the city to study the market, according to experts.
