Real estate prospects of Ho Chi Minh City: Investment point attracting foreign capital
According to Savills’s report on Vietnam’s real estate market in the first quarter of 2019, Vietnam maintains stable growth, notably in Ho Chi Minh City with a strong begin, positive outlook is point attracting large investment capital from abroad.
Highlight colors on the top of the wave
Foreign capital inflows into Saigon real estate are increasing, especially from Korean, Hong Kong, Japanese, Singaporean investors…
According to CBRE’s report in the second quarter of 2019, the demand for office space continuously recorded positive growth, especially in the context of the US-China trade war. This trade war has prompted foreign manufacturing and logistics companies to seek office space to move from China to Vietnam.
According to CBRE, the increase in office rental demand is up to 29%, up 21% compared to the same period last year. Nearly 40% of new rental needs come from manufacturing and logistics companies, 50% of which have offices in China.
With limited supply in the first half of 2019, CBRE predicts that Grade A rents will continue to increase slightly in 2019 and 2020 with growth rates of 3% and 0.6% respectively. The average rent of Grade B is expected to continue to rise higher in the next 3 years. Specifically, from the end of 2019 to the end of 2021, the rental price of this segment will increase by 2.3%, 1.8% and 2.6% respectively.
Scarce supply together with housing development program for the period 2016-2025 of the Ho Chi Minh City People’s Committee that does not grant permission to develop high-rise apartment buildings in the city center, pushing demand up to “hot fever”, creating advantages for existing project developers under construction.
Infrastructure – the solution to the problem of attracting investment
After 25 years of strong development with District 7 as key element, the southern area of Ho Chi Minh City is growing steadily in real estate value. The current average selling price ranges from VND 30-75 million/m2 (USD 1,500-3,500/m2), an increase of 20-30% over the past year. Real estate businessmen said the price of this area will continue to increase strongly.
This is the area with the most modern infrastructure, a series of traffic projects approved by the City People’s Committee with a total investment of up to USD 6 billion. In particular, the Thu Thiem 4 bridge connecting District 7 and District 2, the Metro Line 4 with a cost of over VND 97,000 billion, is considered as the artery connecting the inner districts and the city satellite area.
As a multi-dimensional traffic hub, District 7 quickly formed urban areas with the most modern and civilized resident community, playing a key role to help create a high-class, trendy lifestyle for HCMC.
Sunshine City Saigon – a spectacular “taste” push for investors
In the context of the continuous increase in real estate in District 7, “giant” Sunshine Group quickly emerged by creating an impressive super project, giving investors with “low capital” a real class choice.
Sunshine City Saigon project launched in late 2018 is a pioneer, a good start in the Southern strategy of Sunshine Group. Including a utility system to serve the customers who deserve “extreme products” leading the highest segment of the market, the project is evaluated by experts as a kick to change the urban appearance of the HCMC.
Possessing the best position of “first near town, second near river, third near road” right in District 7, it is confirmed that it is rare to find the most in South Vietnam, Sunshine City Saigon quickly catches eyes of investors also by located adjacent to Phu My Hung urban area.
This is a well-known area that gathers wealthy residents, has out-of-town facilities with prestigious hospitals, international schools, and high-class entertainment spots to serve the upper-class life.
What stimulates the “taste” to invest more strongly is the design of the project. The whole project clearly shows the understanding of the trend of promoting the value of the living environment, especially for foreign guests in Vietnam who want to own a safe and convenient place that is full of utilities.
Sunshine City Saigon creates a green living ecosystem with 7000 m2 of green trees, bringing fresh and relaxing space in the heart of the city while ensuring comfort with international 5-star service chain.
An important reason for Sunshine City Saigon to affirm its rank to shine in the “basket” of foreign investors is to create a unique, distinctive in architecture and meticulousness and sophistication in the interior.
The Sunshine Sky Villa – famous for its skylight design and super-luxury furniture – It also possesses rare river views that are hard to find.
The outstanding advantage of Sunshine City Saigon is also in the modern 4.0 technology integrated for each apartment, making the project more prominent in the eyes of investors compared to neighboring projects. In it, the Sunshine Home application allows residents to control the devices in the apartment as well as keep in touch with investors, management or service providers.
Sunshine Group also advocates to create a truly intelligent life, with smart resident card system to ensure security and benefits of using internal and external utilities. This is also a credit card with a limit of up to VND 300 million for residents to comfortably shop.
With all the “new-unique-rare-quality” elements like that, it can be said that Sunshine City Saigon deserves the super product in the list of sophisticated investors. Based on assessing the overall market situation in Ho Chi Minh City, the emergence of outstanding projects such as Sunshine City Saigon will also create many potential investment opportunities and profits for international investors who are technically sophisticated and have pioneering tastes.