Real estate is heating up in coastal Nha Trang City, particularly land for building low-rise houses, apartments in new urban areas or vacation property. Seeing this trend, Nha Trang Housing and Urban Development Joint Stock Company or HUD Nha Trang for short has launched many large-scaled real estate projects to create a considerable housing fund, substantially contribute to overall socioeconomic development and give a facelift to the city since 2008.
By effectively applying advanced technical and technological innovations and pursuing the desire of developing traditional property products (residential land, low-rise buildings and apartment buildings) in new urban areas, HUD Nha Trang has expanded into a range of tourism property products. Mr Hoang Dinh Thang, Director of HUD Nha Trang, said, HUD Nha Trang has always spared no effort to overcome every difficulty to achieve annual growth of 10-15 per cent or higher. HUD Nha Trang has successfully carried out some large-scale projects in Nha Trang City (e.g. Phuoc Long New Urban Area and Nha Trang-SeaPark Villa Village), even during the downtime of property market (2012-2013). The company will launch some new larger projects in Nha Trang City (in Vinh Thanh, Vinh Trung and Vinh Ngoc villages) and Dong Soai town, Binh Phuoc province.
According to property experts, compared with other projects in Nha Trang City, HUD Nha Trang’s achievements have demonstrated the company’s excellent competencies and efforts in this volatile property market. The most prominent product of HUD Nha Trang is Phuoc Long New Urban Area in Phuoc Long Ward, Nha Trang City (covering 48.2 ha of land and costing nearly VND1,000 billion). This is one of four detailed urban zone projects on the west of Le Hong Phong street. However, Phuoc Long New Urban Area is situated on a prime location-the southwest gateway and the future centre of Nha Trang City, where the landscape is magnificent, the traffic is convenient and living environment is fresh and civilised.
After nearly nine years, the project has completed 90 per cent of infrastructure works (built on 42 ha out of 48.2 ha cleared for construction). Currently, HUD Nha Trang has started to carry out component projects on the area with constructed infrastructure like high-rise buildings and commercial buildings. In early 2017, the company started construction on a social housing project called NOXH 01 (six 10-storey blocks with about 1,000 apartments). HUD Nha Trang expects to build five 15-storey serviced commercial and residential blocks in 2018 to supply thousands of midmarket and upmarket apartments.
Following its successes, HUD Nha Trang will continue to affirm its prestige, image and brand name in the property market by opening for sale the Nha Trang-SeaPark high-class villa and vacation home complex in a truly unprecedented and distinctive location. Covering 7.7 ha in Phuoc Dong commune, Nha Trang-SeaPark has 62 lots of detached villas covering 200-700 square metres each, interwoven with two 3-storey apartment blocks. The project lies on a sloping mountain, leaning its back on Hon Ong Mountain and looking to the sea and Cua Be Estuary. Intermingled with the villas are green areas, sports facilities, entertainment areas (swimming pools, tennis courts, etc.). In addition, the project has more than 7,700 square metres of seawater surface which will be built into a tourist service quay-marina to create a deluxe, classy seaside villa colony.
“Always standing from the perspective and position of customers, actively facilitating them to deal with emerging difficulties by rescheduling loan payment terms, extending payment periods as per signed contracts and assisting them to borrow money from banks to buy houses or seek sub-buyers, HUD Nha Trang has made a difference from its rivals in the area,” said Mr Thang.
In fact, customer confidence is the biggest motivation for the company to further expand its business and real estate investment remains the core. Therefore, in addition to continuing its component projects in Phuoc Long New Urban Area and Nha Trang-SeaPark Villa Complex, HUD Nha Trang will base on market developments to consider new real estate ventures like VND2,000-billion Tay Nha Trang project ( Western Nha Trang ) covering 200 ha in Vinh Thanh, Vinh Trung and Vinh Ngoc communes; VND100 billion expansion to Nha Trang-SeaPark Villa Complex; and VND700-billion Dong Xoai Central Park and Township in Binh Phuoc province.
Dong Xoai Central Park and Township, covering 60 ha, is one of important projects of special concerns of Binh Phuoc provincial government and people because it not only shapes a new synchronous urban zone which delivers high-class living standards and creates a green living space in the heart of the town but also plays an important role in upgrading Dong Xoai into a provincially governed city by 2018 and a third-grade urban zone by 2020.
However, HUD Nha Trang has also encountered certain difficulties in business operations. In real estate business, apart from required huge investment value, the toughest hardships are site clearance and sale (usually, ownership certificates are not issued to buyers at this time). with its experience, HUD Nha Trang understands that communicating information on project products in general, low-income housing and social housing in particular to people is extremely important since buyers tend to be very cautious when they spend a big sum of money on a product that they are uncertain of quality or legality. Hence, many are not ready to buy property products although they need. If this big bottleneck is cleared, the project will be successful.
In this regard, according to Mr Thang, the company always ensures its credibility to customers, is willing to provide necessary documents at the earliest possible, guarantee construction quality, progress and delivery schedule and handover of ownership certificates to customers, thus gaining their trust in the company and buying the products. In fact, when put into operation in 2010, Phuoc Long New Urban Area (futures property assets-No ownership certificates issued at the buying time), customers were very hesitant. Then, HUD Nha Trang fulfilled its commitments to handing over products in time and granting ownership certificates at the time of buying, there was a sharp rise in customers interested in the project although the prices picked up significantly. Besides, pricing according to the market development is also extremely important, especially to social housing projects.
Currently, NOXH 01 social housing project in Phuoc Long New Urban Area is under construction by HUD Nha Trang and it will surely offer a reasonable price for local people (apartments of 60-70 square metres with modern design, area optimisation: two bedrooms, two toilets, one living room, one kitchen and one living room; selling price is VND8.5-9 million per square metre or VND500-600 million each apartment). The Government continues to apply preferential interest rate for social housing at 4.8-5.0 per cent per annum (replacing VND30 trillion support package). In addition, credit institutions are also applying good policies for buyers of social houses. This is a prerequisite for housing projects in general and social housing projects of HUD Nha Trang in particular to get closer to customers,” he said.
Cash flows are being channelled into Nha Trang City-a place that possesses special geographical conditions and has attractive investment incentive policies of the local government. Local people will have more opportunity to access new residential lands, apartments, villas, vacation property and resorts. Investors are looking for opportunities to possess well-located, reasonably-priced projects. Domestic and foreign property developers keep investing strongly in upmarket projects. Therefore, to have a solid foothold, HUD Nha Trang will focus on the principle of “Effective investment, sustainable development, ongoing expansion” and strictly comply with State business regulations and standards.
Director Thang said, HUD Nha Trang focuses on midmarket segments and its revenue and efficiency on a unit of land area is not as high as those of upmarket projects and villa projects. On the other hand, the slow land clearance also affects the overall performance of projects. Indeed, to draw more investors, local authorities should review, supplement and perfect planning and persuade the masses to support site clearance to help investors to shorten the construction time and improve project efficiency.