Property Market in High Demand
Mr Marc Townsend, Executive Director of CB Richard Ellis Vietnam, a leading property consulting company said that in the next two years, the property market in Hanoi and Ho Chi Minh will continue to be in high demand. He has conducted an intensive market survey in the two cities and concluded that offices, apartments and commercial centres of grade A are most promising.
Office rental is USUSUS$26 per sq. metre in Hanoi and USUSUS$27 in Ho Chi Minh city, almost equal to that in Singapore. Over the next 2-3 years, Singapore will build some 300,000 sq. metres of office space, while Hanoi and Ho Chi Minh city will remain the same without similar high-rise buildings. In Ho Chi Minh City, the projects under consideration are three times the size the existing ones and in Hanoi 24 projects are under construction including the 65-storey Hanoi City Complex, but the supply remains short of the demand.
Apartment rental is USUSUS$24 per sq. metre in Hanoi and USUSUS$22 in Ho Chi Minh City while in Manila is USUSUS$15. In Bangkok, there are 70-80 buildings with 10,000 apartments for rent. It will take much long time for Hanoi and Ho Chi Minh City to achieve the same figures and it is most promising for investors. Ciputra Hanoi apartment fast sold out at USUSUS$600 per sq. metre, Pacific Palace Hanoi offers USUSUS$1,650 and The Manor Hanoi USUSUS$1,500 while in Ho Chi Minh city, the Lancaster apartment is USUSUS$2,100, Pasteur Court USUSUS$2,200 and the Manor USUSUS$1,600 per sq. metre.
For commercial centres, the rental in Bangkok is USUSUS$59 per sq. metre, much higher than in Hanoi (USUSUS$30-36) and Ho Chi Minh City (USUSUS$35-40). However, it will become more promising as small shops are moving into commercial centres and customers like shopping and recreation in big centres.
Regarding industrial zones, the rental in Ho Chi Minh city is USUSUS$1.5 per sq. metre and in Hanoi USUSUS$1.3.
The land price in Hanoi ( city centre and the West Lake) currently stands at USUSUS$5,500 per sq. metre, with 8-storey buildings permitted on the land, the floor price will be USUSUS$650 per sq. metre. As regards the 10-storey buildings permitted in Ho Chi Minh City, their land price is USUSUS$4,000 per sq. metre, with a floor price of USUSUS$400, costing more than in Bangkok.
Mr Marc Townsend said that Vietnamese investors should focus on the development of Grade B and C offices as the demand is huge and they can be fully rented in 2-3 years if they have good parking, lifts, toilets and management. While foreign investors should develop the high class property market leading to strong competition.
Vietnamese
