Luxury condotels: new and attractive investment channel!
Luxury condotels: new and attractive investment channel!
The imminent launch of a luxury condotel project in Hanoi has drawn a lot of attention in the real estate sector. Many expect the project to signal the beginning of a race in the high-end rental condotel segment.
Low value of traditional rental apartments
According to real estate investors, leasing apartment is a narrow, but attractive segment in the property market, holding great potential.
Data from Savills Vietnam has shown that Hanoi is leading the rental apartment segment.
Profits generated by leasing apartments in Hanoi reach 7.4 per cent, exceeding the 5.8 per cent of Ho Chi Minh City. It is also higher than the figures for other Southeast Asian cities, such as Jakarta (5.2 per cent), Kuala Lumpur (4.8 per cent), Manila (4.3 per cent), Bangkok (4.0 per cent), and Singapore (3.7 per cent).
This makes Hanoi’s rental apartment market more attractive than other provinces in the country or even other regional countries.
However, this potential market presents many controversial issues.
According to commercial real estate services firm CBRE, despite having great demand, traditional rental apartments still show limitations, such as the lack of utility services and living space, thus tending to lose value.
The rental price of a traditional apartment in Hanoi is $10 per square metre per month, while a luxury rental condotel usually fetches about $24-34.
CBRE’s Real Estate Market Survey for the first quarter of this year showed that a grade A rental apartment cost $31.84 per sq.m, up 1 per cent quarter-on-quarter and up 1 per cent year-on-year. Meanwhile, the rental price of a grade B apartment fell slightly by 0.2 per cent quarter-on-quarter.
Throne of high-end rental property
Taking advantage of the trend of high-end rental condotel, Lan Anh, an experienced real estate investor, chose to buy a condotel of the unique 5 Seasons project, which was newly introduced by TNR Gold Season in Thanh Xuan district.
According to Lan Anh, the real estate market in Hanoi has been transformed by the abundance of newly developed areas, but central areas like Thanh Xuan district remain attractive. Apartment rental prices in this area are among the highest in Hanoi.
Moreover, the supply in this segment is scarce because of the limited height of buildings in the inner-city districts. The number of apartments for sale or lease in Thanh Xuan district remains modest.
In addition, most of the projects here are offered for sale. After purchasing the apartments, buyers lease them out to other renters. Other landlords then self-construct and self-manage their houses, offering them to foreigners.
Therefore, although there are many projects on offer to customers, very few of them are well-equipped with adequate utilities, services or are professionally managed under international standards.
Lan Anh said that high-end condotel projects such as 5 Seasons can overcome the limitations of traditional apartments.
Located at 47 Nguyen Tuan Street, residents can easily reach the city centre and the suburbs through main arterial roads, such as Nguyen Trai, Le Van Luong, and Ring Road 3 Khuat Duy Tien–Noi Bai, as well as Cat Linh–Hadong Highway.
Not only is it a centrally-located high-end condotel project, but it also provides a wide range of exclusive and free amenities for life, such as a tropical swimming pool, gym, yoga, sauna, jacuzzi, a community recreation room with billiards table, table tennis facility, a library, and a conference room.
In addition, 5 Seasons also offers five-star services to each household, including luxurious lounges, storage areas, and Wifi service in addition to the abundant home-related services, such as housekeeping, food services, and laundry.
“With these special offers, investors will hardly find another project with the same quality,” said Lan Anh.
