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NEWSLETTER HCMC SERVICED APARTMENT ISSUE JULY 2013 RESIDENTIAL LEASING MARKET OVERVIEW RESIDENTIAL LEASING HOT PROPERTIES CONTACT
NEWSLETTERHCMC SERVICED APARTMENTISSUE JULY 2013
RESIDENTIAL LEASING MARKET OVERVIEW
RESIDENTIAL LEASING HOT PROPERTIES
CONTACT
RENTS CONTINUE DECLINES IN ORDER TO MAINTAIN OCCUPANCY
HO CHI MINH CITY HOT PROPERTIES
SER
VIC
ED A
PA
RTM
ENT
Q2 2
013
SER
VIC
ED A
PA
RTM
ENT
Q2 2
013
Q1 witnessed two large-scale projects coming online, both of which are operated by the international groups.The year 2013 opened with two new projects coming into operation, bringing an additional 275 units.On January 23, 2013, The Ascott Limited held an opening ceremony for Somerset Vista, Ho Chi Minh City (100 units, 20 of which are ready for move in) and Vista Residences (168 units). Located on Hanoi Highway, District 2, the serviced apartment belong to a mixed-use project of office, retail, condominium, and a full range of lifestyle and fitness facilities. The first launch has been well-received with 50% occupancy reported at March end.Capri Hotel Residences welcomed its first tenants in early February 2013. Located in Zone A, Phu My Hung NUA, Tan Phu Ward, District 7, this project provide175 units, ranging from 26 - 69 sm each. This is the first project by Fraser Hospitality in HCMC and the second one for its new Capri brand in the world.With Capri Hotel Residences coming online, District 7 supply exceeded both districts 3 and 2 and ranked second (15.7%). Interestingly, District 7 has the smallest number of projects (5 only) among the top five districts.
WITH EIGHT OUT OF NINE GRADE A BUILDINGS REVISING THEIR QUOTATIONS DOWN, THEIR VACANCY IMPROVED AC-CORDINGLY, PROVING THAT PRICING IS THE KEY FACTOR.
1,827
676
652
534
330281 District 1
District 7
District 3
District 2
Binh Thanh
Others
$20
$25
$30
$35
$40
2010 2011 2012 2013
Grade A Rents Grade B Rents
0%
5%
10%
15%
20%
25%
30%
2011 2012 2013
Grade A Vacancy Grade B Vacancy
Market has not seen bottom yet since rents kept sliding downwards.As a greater proportion higher-budget enquiries have recently looked for villas, Grade A rentals continued to see a minor decrease of 1.2% q-o-q with eight out of nine projects adjusting their quotation downwards in the review quarter. Grade A rent saw a drop by 16.8% from its recent peak in the third quarter of 2011. With no new supply since late 2009 and gradually falling rentals for six quar-ters in a row, Grade A developments showed better take-up (vacancy down by 1.1 percentage points). A drop of 4.5% q-o-q has been seen in the Grade B average rent yet the vacancy rate has not showed signs of improving (currently over 26%), due to the combined challenges from the increasing supply (including the two latest large-scale newcomers), the market’s limited demand and the fierce competition from the buy-to-let alternatives.
Serviced Apartment Asking Rents Serviced Apartment Vacancy
Existing Supply by District (units)
Hoang Van Thai, Dist. 7Room: 1 - 2 bedroomsUnit size: 28 - 69smRent/month: $1,200 – $2,500
An Phu ward, Dist. 2Room: 2 - 3 bedroomsUnit size: 101 - 314smRent/month: $800 – $3,500
Giang Van Minh, Dist. 2Room: 4 - 5 bedroomsUnit size: 280 - 700smRent/month: $3,600 – $4,200
District 1Room: 1 - 2 bedroomsUnit size: 50 - 100smRent/month: $2,000 – $3,000
Thai van Lung, Dist. 1Room: 1 bedroomsUnit size: 43 - 47smRent/month: $1,800 – $2,050
Nguyen Van Huong, Dist. 2Room: 3 bedroomsUnit size: 145 - 201smRent/month: $2,400 – $3,800
Facilities
ParkingUnit sizesRoom Rent periodRent/monthAvailabilityType
- Swimming pool- Gym- Tennis Court- Children playground- Convenient Store
3 basements101 – 428smFrom 2 to 5 bedrooms Flexible$900 - $4,000Instantly movingNon serviced apartment
THE VISTAHanoi Highway, Dist. 2, HCMC
CAPRI HOTEL RESIDENCE THE ESTELLA VILLA RIVIERA
LAFAYETTE SAIGON CITY RESIDENCE XI RIVERVIEW PALACE
©2013 CBRE Group, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.
CBRE (Vietnam) Co., Ltd.
Ho Chi Minh City, VietnamUnit 1201, Me Linh Point Tower2 Ngo Duc Ke Street, District 1,Ho Chi Minh City, Vietnam
Hanoi, Vietnam6th floor, BIDV Building194 Tran Quang Khai Street,Hoan Kiem District,Hanoi, Vietnam
www.cbrevietnam.com
Ho Chi Minh City OfficeMs. Trang VoLeasing ManagerResidential LeasingT : +848 3824 6125M: +84 905 331 [email protected]
Hanoi OfficeMr. Dung NguyenLeasing ManagerResidential LeasingT : +844 222 00 220M: +84 906 278 [email protected]
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