Townhouses with easy Saigon access more alluring to investors

A study by Jones Lang LaSalle (JLL) Vietnam, a real estate services firm, shows that in the fourth quarter of 2019, semi-detached houses and villas in Ho Chi Minh City's primary market saw prices go up nearly 25 percent year-on-year to about VND110 million ($4,760) per square meter. This upward trend has not changed in the past four years as new supply of products in this segment has been quite limited.

The price jump from the past year in the Ho Chi Minh City property market will keep its momentum, the study said.

Locations neighboring HCMC, like Dong Nai, Binh Thuan and Ba Ria-Vung Tau provinces are also in the limelight, courting capital flows from both developers and investors. This has happened on the back of diverse factors like an increasingly comprehensive infrastructure, including good linkages with the city center, vast land banks providing space for developing modern associated utilities and good investment value, according to JLL.

Townhouses are catching growing attention from prospective investors.

According to a summary report released early this year by the Ho Chi Minh City Real Estate Association (HoREA), almost all mid-range apartment products found owners while the rate for products at commercial townhouse projects surpassed 60 percent during 2019.

It pointed out good liquidity in the local real estate market with the lion’s share of aggregate demand backed up by high payment capacity.

A combination of factors including policies by management agencies, the green real estate trend among businesses and growing levels of professionalism among investors has kept the market buoyant, HoREA said.

"There has been a shift in choosing investment channels as investors are paying more regard to products offering sustainable returns. Capital inflows are also predicted to grow as the market gets more vibrant," a HoREA representative said.

Projects close to the central business districts with convenient transport are luring customers.

Industry experts assumed that like in the case of Ho Chi Minh City several years ago, townhouses in these areas promise buoyant returns in the years ahead when the market experiences booming development.

Rising profitability coupled with flexible payment policy

Minh, a resident of Ho Chi Minh City's District 2, said that after carefully considering market trends, his family purchased a townhouse at the Aqua City project of Novaland Group, which is close to Ho Chi Minh City.

Minh believes satellite urban areas like Dong Nai Province offer seamless infrastructure and convenient transport while staying within easy reach of the city.

Townhouse units at Aqua City offer modern on-site utilities and amenities.

Aqua City entices buyers with an attractive payment policy. For the first time, Aqua City has introduced a special incentive for Novaland shareholders.

Between February 25 and June 30, customers who have held at least 1,000 Novaland (NVL) shares for six consecutive months will enjoy a discount of VND55 million ($2,380) on Aqua City products. The program will run alongside other promotions.

"With these incentives, becoming a townhouse owner at Aqua City is a cost-efficient option" said Quoc Huy, a Novaland shareholder and veteran investor.

Amidst a warming up real estate market and the developer’s attractive sales and incentive policies, Novaland said it expects Aqua City townhouses will steal the spotlight in the southern market.