Work starts on new property projects despite dreary market

The local property market is still plagued by extremely low consumer demand, but some developers have begun work on their projects in certain areas in District 9, HCMC.

Thang Long Real, a property developer, has kicked off a sale of Nature Land, a part of Dong Tang Long urban area in the district’s Truong Thanh Ward, which will cover 160 hectares and cost US$94 million.

There are 119 lots of land available for sale at VND9.9 million per square meter. The period of payment is one year and a half. The company has recently organized a meeting with 500 potential buyers and 17 of them have put their names down to purchase lots.

In another project, HVK, a joint venture between construction firm Hung Viet and Korea Real Estate Development Fund (KRDF03), has commenced work on The Eastern on Lien Phuong Street, District 9.

The venture will invest about US$40 million in the project with 648 apartments of 56 to 112 square meters each. The project is projected to be ready in end-2013.

Adjacent to The Eastern, there is a Villa Park project just completed by Khu Dong, a unit of Khang Dien Company, and 60 units there have been handed over to customers. The 11-hectare luxury Villa Park in Phu Huu Ward has a total of 213 semi-attached and terraced units.

A second handover is expected to take place in June next year.

According to property market research firm Savills Vietnam, HCMC’s eastern area including districts 2 and 9 is a key source of land lot supply with prices ranging from US$140,000 to US$2.38 million per villa and from US$96,000 to US$890,000 per terraced house.

More than 1,700 villas and terraced houses are forecast to enter the HCMC market next year and another 2,000 in the two following years in districts 2, 9, 7 and Nha Be.

Source Saigon Times

Tags: Vietnam Property market, Vietnam property sector, vietnam real estate market