While many people still doubt recent developments of the real estate market, more projects building multi-storey apartment blocks have commenced. The projects contribute to beautifying Ho Chi Minh City.
There are many reasons for investors to continue to pour money into multi-storey residential blocks. Firstly, the business environment in Ho Chi Minh City has become busier with rapid development of trade and services, which have become a spearhead sector of the city’s economy. Secondly, the city’s investment environment has improved, attracting more investors. As a result, the demand for offices and housing has increased. At the same time, the local people‘s demand for high quality flats with professional management services has risen. Moreover, the development of multi-storey blocks of flats is suitable with the urban development planning of the city.
A boom of high-quality office blocksMany projects building office blocks have been implemented. The Kumho Industrial Company, under the Kumho Asiana Group (the Republic of Korea) started building the Asiana Plaza in October 2006. The plaza, with an area of 1.36 hectares valued at US$223 million, consists of a 21-storey hotel with 305 rooms; a 32-storey block of flats with 260 apartments and a 21-storey office building.
Popular are projects on the development of office and apartment, buildings and plazas. The Manor has an area of 13,000 square metres. In the first phase, the project consists of two buildings, one has 13 storeys, and the other 30 storeys with 426 apartments. The project, located in the east of Ho Chi Minh City, is handing apartments to their first customers. In the second phase, the Manor Officetel is being built. The building consists of offices, luxurious hotel rooms and apartments.
On the last days of 2006, the building of the Saigon Pearl complex was accelerated. Apart from blocks of flats, the project has a trade complex on an area of 40,000 square metres. The complex is the biggest project in the city’s downtown. Saigon Pearl has a total investment capital of US$300 million.
Construction of the Horizon building at 214 Tran Quang Khai, District I, has commenced. This is a trade complex with a 25 storey building with 227 luxurious apartments of different sizes. One storey of the building is used as a car parking area. It also has supermarkets, swimming pools, entertainment areas, kindergartens, restaurants, post offices and other convenient services for people living in blocks of flats and neighbouring areas. The Horizon Tower, developed by the Vietnam Construction Material Corporation and Vinamilk, is expected to be completed in 2008.
Improved quality of multi-storey blocks of flatsAlongside office building projects, real estate developing companies have invested in many multi-storey building projects. This is a development trend of houses in Ho Chi Minh City, which beautifies the city and meets the demand for houses.
There are three kinds of luxury flats. The special kind, priced between US$1,800 and 2,500 per square metre, are in the city’s downtown districts of 1, 3 and 5. Flats priced between US$1,000 and 1,700 per square metre are located near the city’s downtown, with 20 projects. The third kind of flats, priced between US$600 and 900 per square metre, has around 60 projects in Districts 2, 11, 7 and Tan Phu.
Competition between Vietnamese and foreign developers has become fiercer. Therefore, developers have to improve the quality of their products and services. Most projects have space for parks and public works. This, in turn, will help improve the quality of local residents.
Estate traders forecast in 2007 flats will remain a favourite choice of many customers. As the Law on Real Estate Business takes effect, favourable conditions will be created for investors. This year, with the participation of many foreign investors and soft loan programmes of banks for those who want to buy houses, the real estate market of Ho Chi Minh City is expected to bounce back in the coming time.
According to reports by the Ho Chi Minh City Department of Construction, in 2006, construction value in the city was put at VND 37,043 billion, up by 26.2 per cent against 2005. Realised capital construction investment was VND 54,947 billion, up by 17.8 per cent. Foreign investment capital increased by 18.9 per cent.
Hai Nguyen
Vietnamese
