02:49 (GMT +7) - Tuesday 22/09/2020


Property remains vibrant in HCMC's east

Released at: 10:54, 08/10/2015

Property remains vibrant in HCMC's east

City's eastern districts continue to catch the eye of investors and buyers alike.

by Hoang Thu - Nguyen Quynh

The latest report from Savills on Ho Chi Minh City’s Real Estate released on October 7 showed that 5,220 apartments were sold in the third quarter, an increase of 4 per cent quarter-on-quarter and 59 per cent year-on-year, of which Districts 2 and 7 and Binh Thanh district continued to perform well, accounting for 53 per cent of total transactions.

According to Mr. Neil MacGregor, Managing Director of Savills Vietnam, it has been actively working with investors and developers on a range of projects in District 2 and 9, including key projects within the Thu Thiem new urban area. The construction of the urban railway line has had a positive impact on the development of projects in the area, especially in District 2.

“Most enquiries have been regarding the apartment market in the east and whether there is sufficient sustainable demand to support the large volumes of supply in the area,” he said. “In the first six months of this year the number of such enquiries increased 65 per cent compared with the second half of 2014.”

Among the projects in District 2 are “The Nassim”, which is jointly developed by SonKim Land and Hongkong Land in the heart of Thao Dien. The project comprises 238 residential units ranging from one- to four-bedroom condominiums and penthouses, offering a premier location and exclusivity unparalleled in the market.

Vietnam’s real estate market has been growing, especially in the high-end segment of the condominium market, according to Mr. Robert Wong, Executive Director of Hongkong Land. After years of conducting extensive research, Hongkong Land decided to intensify its presence and business here by collaborating with SonKim Land. “The Nassim is a true luxury project that will be a welcome addition to Hongkong Land’s regional residential portfolio and a great example of successful strategic partnerships with local developers.”

Regarding demand, Savills identified that projects in strategic locations by reputable developers received attention from purchasers. Infrastructure development and good urban planning will improve the connectivity of new urban districts to the city center, contributing to higher sales rates.

“Purchasers can benefit from relatively low home loan interest rates, direct discounts, and prolonged payment schedules,” the report wrote. “The stable yield and rental capacity in well-developed areas have encouraged buy-to-let investors.”

From the fourth quarter to 2017 Savills forecasts approximately 57,500 new units from 92 existing and future projects will enter the market, of which approximately 33 per cent of total future supply is expected to be completed this year and next year.

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