Ho Chi Minh City, Vietnam

Having spent the last several years with a rather lacklustre economy, Vietnam today is one of South East Asia’s growth darlings, having registered breakneck economic development numbers in recent years. According to some observers, Vietnam, particularly Ho Chi Minh City (HCMC), is currently on the target list of almost all major investors interested in Asia, especially the stellar success seen and still expected of South East Asia. Countries known to be notably interested in the city’s real estate projects include Singapore, Japan and South Korea. This is a given considering how HCMC is the country’s main economic driver, having shown gross domestic product (GDP) growth of at least 7.5% year-on-year in the first six months of 2016.

To most foreign real estate investors of HCMC, residential apartments are a main stay, though of late there is talk of a possible oversupply in the pipeline, especially in the condominium sector, due to a series of major new launches. Landed homes on the other hand see a strong following, especially amongst the well-heeled ethnic Vietnamese looking to return to their homeland in the near future. Overall, optimism in the market reigns, largely because of the multitude of regional trade deals inked by the government and Vietnam’s position as a “China plus one” investment destination. All of this explains the strong interest investors have in greenfield projects, although a small nascent market is also present for brownfield (completed) developments. Rental yields are healthy at about 7% to 8%. Nonetheless, bottlenecks exist because regulations remain somewhat opaque, especially when it comes to land ownership and general red tape which obstructs the making of deals for developers and major transactions alike.

In many ways, HCMC is very much like what south-eastern coastal China was in the late eighties to mid-nineties. Demographically, it is young with a growing middle class and is governed by a previous Communist regime that is slowly opening up to more economic liberalisation and trade. In fact, so similar it is to the coastal regions of China that many factories that used to operate in the Pearl River Delta have found themselves setting up shop in HCMC instead, meaning rising demand for real estate and a broadly similar economic trajectory in the market. In fact, this trend also echoes China’s move from a predominantly agricultural economy to a post-industrial one focused on service and manufacturing. All of this explains the more than 10% increase in real estate investment last year than the year before. As the market becomes more transparent, predictable and manageable, the projected 6% economic growth for 2017 will continue to fuel significant progress in the real estate market of HCMC.

In fact, according to the data compiled by the Urban Land Institute regarding real estate trends in 2017 for Asia Pacific, HCMC is in fact the second-most popular market in the region for investments. Over 70% of institutional investors are in favour of Vietnamese apartments, a number lower than only Bangalore (our next and final city to study), especially the smaller flats that will attract the rising affluent middle class in the country and city.

Infrastructural developments in HCMC are also a contributing factor to the strong long-term potential in the city. Metro lines are under construction to improve connectivity, linking the districts to the bustling city centre. The elevated section of HCMC’s Metro line is slated to be completed this year, and underground works are expected to be completed in 2019. All of these are drivers of the market today, and are key to pushing prices of high-end homes to an 8% year-on-year increase vis-a-vis Q1 in 2016, according to CBRE Vietnam Real Estate.

ON THE MARKET

Feliz en Vista

Feliz en Vista is an exceptional residential project from the team at CapitaLand in cooperation with Thien Duc Investment. Comprising three residential towers and a further serviced apartment block, the concept originates from “The City Fabric”, a metaphor for the patchwork-like interlacing of function and form, modernity and nature.

The importance of a ‘work and play’ environment is seen from the foundations up. Exceptional exterior and interior design paired with extensive landscaping sympathetic to the area and proximity of Saigon river has all been carefully considered. Feng Shui consultation of the site was carried out by Dato Joey Yap, the world’s leading authority on Chinese Metaphysics; and it shows in the four different living concepts. Indeed, the river located to the Southwest section of Feliz en Vista denotes, from a classic Feng Shui perspective, an abundance of wealth opportunities for future residents.

Altaz, the signature tower, is a mixed 34 floors of garden villas, penthouse duplexes and sky mansions and unusual surprises such as a VIP lounge and cigar bar. Prices for a three-bedroom duplex of 1,281 sq. ft. start at approximately USD 309,000. The premium tower, Berdaz comprises a mix of studio, two and three-bedroom set-ups, whilst the third option, Cruz is an L-shaped development close to Dong Van Cong road.

As for facilities, the development boasts saltwater swimming pools, hot spring Jacuzzis, outdoor movie theatres and a treetop adventure walk bridge. Expect a marriage of contemporary urban living with 5-star resort-style facilities in a project described as an ‘architectural masterpiece’ in Thanh My Loi Ward, a sought-after area of the city.

With four different target customers in mind, comprised in one exclusive development, CapitaLand look to push the boundaries of real estate in Vietnam.

For more information:
www.asiabankersclub.com / Tel: +852 3998 3001

Vista Verde

The talk of the town currently is Vista Verde, a project by Singapore real estate developer CapitaLand. Named after “verde”, which means green in Spanish, Vista Verde showcases lush green landscaping and features designed to bring a symphony of nature to residents. It is a highly-anticipated launch strategically located in Thanh My Loi Ward, in the heart of HCMC’s District 2 administration centre, with immediate access to the Central Business District. The four main towers (Towers 1, 2, the Lotus Tower and Orchid Tower) have been known to be especially popular as premium and luxury homes and has garnered significant international and regional attention, given HCMC’s high profile in the minds of many affluent and institutional investors.

Located just five minutes from major amenities like the Parkson Department Store, Lotte Cinema, Phuc An Khang Hospital, and prestigious international schools like the ACG International School and the Metro Hypermart, it promises to provide modern living comforts and conveniences right in the heart of the city. Vista Verde is also 10 minutes away from District 1 and 7, with excellent connectivity via the Thu Thiem Tunnel, Thu Thiem Bridge, Saigon Bridge and Phu My Bridge.

The project is expected to complete towards end of 2017. Vista Verde provides residents with state-of-the-art recreational facilities such as an iconic gym and clubhouse with a 360-degree view, resort-style swimming pool, lounging islands, jogging track, and tennis court. In addition, a shopping town at the ground floor provides residents with essential retail shops for their convenience.

Vista Verde has over 30 unit types available in quality finishes, including the 1, 2 and 3 bedroom and duplex units, with floor areas ranging from 484 sq. ft. (from USD 110,000) to 1,270 sq. ft. (from USD 260,000). Designed for modern living, all of them boast spacious living and dining areas with spectacular views and a luxurious pool, natural ventilation and a loggia. Like many of CapitaLand’s other offerings in other countries, the units are also made affordable through a variety of flexible payment schemes.

For more information:
www.asiabankersclub.com / Tel: +852 3998 3001

This article was first published under Special Features in Palace 19.