A domino effect in Hanoi’s condotel scene
A domino effect in Hanoi’s condotel scene
Experts have warned that if there is no breakthrough in development, the luxury apartment segment of the real estate market will become saturated.
Bottleneck in high-end investment
After a long time, "big" real estate firms have started pouring capital into the high-end apartment line to exploit the huge potential in rental demand. At the moment, this trend is showing signs of slowing down.
According to statistics from Savills, the property market in Hanoi will receive about 23,500 apartments in the second half of 2017, and nearly 64,000 apartments from 2018 onwards. However, high-end apartments account for only 30 per cent of this, decreasing significantly against the same period last year.
Meanwhile, the report of HSBC showed that Vietnam ranked as the second best working environment for foreign experts in Southeast Asia. Currently, more than 80,000 experts, doctoral students, and foreigners come to live and work in Hanoi every year for three to five years, earning over VND2 billion ($88,000) per year.
The demand from this customer group is not small, but their requirements for rental apartments are fastidious. Therefore, although the development potential of apartments for rent is large, Hanoi’s market in particular has not been able to accommodate these discerning guests yet.
According to experts, the root of these problems is that the supply does not meet market demand, resulting in delays in liquidity, and investors are not interested in the projects being launched.
A survey of the market for high-class apartments for rent in certain districts, such as Dong Da, Cau Giay, and Thanh Xuan, has shown that fully furnished apartments with two bedrooms or more have selling prices ranging between VND45 and 55 million per square metre and renting rates go from $1,300 to $3,000. However, projects that meet all the requirements are now scarce. Meanwhile, although many new projects are being launched, they are still unable to satisfy the market demand.
5 Seasons — the starting point of domino effect
The apartment segment remains stable and from the third quarter of 2017 it showed good signs with the launch of the 5 Seasons five-star apartment project. The 5 Seasons condotel has been built for investment purposes.
5 Seasons is expected to be the starting point of a domino effect, promising to create a new momentum for the high-end apartment market in Hanoi.
Catching up with new living standards, 5 Seasons has been developed with luxury hotel standards to meet the needs of "home-stay relaxation" for fastidious customers, especially the affluent, businessmen, and foreigner experts in Vietnam who do not have much time to look after themselves and their families.
Not many projects in Hanoi devote nearly 70 per cent of the area for greenery. The 1,600-sq.m Manhattan Park and the nearly 100 synchronous, modern, and friendly environmental utilities will ensure ample space for relaxation and a healthy life.
Although a high-end project, the selling price of 5 Seasons apartments currently ranges from VND1.6 billion, with a discount of up to 6.6 per cent and big incentives from Maritime Bank. This is the best time for investors to seize a luxury apartment in the heart of Hanoi.
A project that satisfies all customer needs formed the basis for investors to "quickly make decision to invest." The recent successful transactions at 5 Seasons have proved this.
