City Gardens flourish in discerning property market
City Gardens flourish in discerning property market
Ho Chi Minh City’s real estate market saw a major boost in the third quarter of this year, particularly in the luxury property segment, where the volume of successful transactions in the first half of 2015 was equivalent to that of the whole of 2014. However, while some projects are selling very well, others within the same segment and of the same quality are proving unattractive to targeted customers.
High-end real estate fever
According to real estate experts, stable micro-economical conditions, the newly-implemented regulation enabling foreigners to own property in Vietnam, and the highly lucrative return rate of investments in the luxury real market segment have led to an increasing demand for premium apartments among customers who are buying the properties either to live in or to lease.
A report by Cushman & Wakefield Vietnam indicated that the demand for this segment is increasing significantly. The percentage of successful transactions in the first half of 2015 is double that of 2012 and 2013, and equivalent to the total amount of transactions in 2014.
In Ho Chi Minh City, there are a number of high-end condominiums for sale, including Masteri Thao Dien, The Sun Avenue, Sunrise Riverside, and City Garden Promenade, to name just a few. Demand is forecast to continue rising sharply from the second half of 2015 until 2017. With 90 ongoing projects and more in the pipeline, about 60,000 new apartments are expected to be launched on the market, most of which are in the high-end real estate segment.
A paradox in the high-end real estate segment: some sell like hot cakes, others unsellable
Although the high-end segment is bustling generally, this positive market sentiment has passed over certain pockets of the market for reasons not immediately clear. Oddly, there is a large gap in terms of transaction volume among different city districts.
Savills Vietnam has reported that up to 53 per cent of all real estate transactions in the city took place in districts of 2, 7, and Binh Thanh. Meanwhile, the remaining 47 per cent was distributed among the other 16 districts and 5 suburban districts of the city.
Clearly, investors are more discerning nowadays, and are expecting projects with a sustainable development value. When investing in a high-end apartment project, investors are paying attention not only to pricing and construction quality, but also to prime location, green living space, and unique design – key criteria for modern customers who put a high priority on living quality and value.
Reviewing the high-end projects in the market today, the premium real estate projects that meet the above mentioned criteria are few because in the city centre, there are not many areas left for a project to meet both the “prime location” and “vast green area” elements. The high-end real estate projects that can meet the above-mentioned requirements include Vinhomes Central Park, Sunrise CityView, and the City Garden high-end condos project, which is renowned as a green oasis in the heart of the city centre.
With its contemporary “wave” tower design, and ideally-located just five minutes from the city centre, City Garden stands out by virtue of devoting a massive 70 per cent of its total area for green spaces and facilities, incorporating open lawns, a children’s playground, a fitness area, and swimming pools, etc. The design achieves good passive solar orientation, maximised benefits of daylight and sunlight conditions, and offers a splendid panoramic view of the Saigon River and the entire city.
Such features make the project attractive to foreigners who value this unique sanctuary amidst the hustle and bustle of Ho Chi Minh City centre. At present, 70 per cent of the apartments in City Garden are for lease at an average price of $1,400 for a two-bedroom unit and $1,700 for a three-bedroom unit. The second phase of the project with two Promenade towers comprising 318 premium apartments opened for sale last Saturday, on December 12, 2015.
Experts said the luxury real estate market segment is switching to a new trend of competition that meets more sophisticated demands of buyers and investors, focusing on prime location, vast green spaces, state-of-the-art design, and full facilities. These decisive factors maintain and enhance the investment value, and ensure a high lease rate.
