After a period of freeze, the real estate market has seen positive changes. To provide a close look at the real estate market in Ho Chi Minh City in recent months, Vietnam Business Forum talked with Mr Nguyen Van Khoi, CEO and Chairman of Ho Chi Minh City Investment and Trading of Real Estate Joint Stock Company (Intresco).
How do you think about the current real estate market?
The real estate market has shown positive changes, especially after the Lunar New Year. During the initial days of the New Year, many people visited real estate transaction centres to explore their desired properties. As the demand rises, the price will be higher. However, it is impossible to fully assess the changes of the property market in the coming time, because Vietnamese people tend buy valuable properties during the initial days or the final days of a year.
Thu Thiem tunnel and East-West thoroughfare projects, as well as other traffic infrastructure projects in Ho Chi Minh City have been approved by the Government, and will be built from now until 2010. This, together with the policy of expanding the urban area to outskirts areas, has helped heat up the real estate market in District 2, District 7 and other precincts.
During this period of “fever,” which kinds of projects are most attractive?
High-rise apartments have been hottest since the beginning of this year and purchasing power has also soared high. High-rise buildings are now the top option for the young generation because they find modernity and convenience in this kind of accommodation. With increasing incomes, demand for luxury high-rise buildings is higher than that of other ones. Furthermore, high-rise apartments are chosen by Saigonese because housing land in downtown Ho Chi Minh City has almost run out. Owning a new house downtown is unaffordable for the majority of people.
In addition, in my opinion, Vietnam’s WTO entry will lead to a surge in foreign investment flows into Vietnam, thus increasing demand for high-rise offices. The need for luxury working offices is forecast to be very high, but will fluctuate based on the practical foreign investment situation in Vietnam.
With a comprehensive understanding of market trends, how has Intresco invested to grasp the market?
We are carrying out the 74-hectare residential area project named 6b, in Block 7, Binh Hung Commune, Binh Chanh District; the 32.7-hectare Intresco residential zone in Phong Phu Commune, Binh Chanh District (belonging to South Saigon Urban Zone); the 24-ha Long Thoi residential zone in Nha Be District; the Thinh Vuong (Prosperity) high rise building in District 2; An Phu-An Khanh high-rise office and apartment complex in District 2; the 30-storey commercial - service - office building complex at 81A - 83 Ly Chinh Thang Street, Ward 8, District 3 with a total investment capital of VND595 billion (US$37.18 million); a 25-story high-rise commercial - service - office - apartment on Ha Noi expressway, costing VND587 billion (US$36.68 million); a project to upgrade Duong Sat - Ly Thai To residential zone in District 3 with estimated investment capital of VND1,275 billion (US$79.68 million); two 30-storey office and apartment complexes with floor area of 89,452.75 square metres; and a 15-story apartment complex covering 19,897.65 square metres for resettlement projects.
The objectives of Intresco are to build complete residential zones to meet the demand of customers for better service utilities and living environment, and to contribute to Ho Chi Minh City’s overall sustainable development.
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