EasyPropertyInfo.com - HCM Serviced Apartments

Less than 25% of the 2,850 serviced apartments in HCMC are Grade A and the number of Grade B apartments only slightly higher. Each unit at the @50 apartment buildings is on average about 100sqm and thus the total stock is about 300,000sqm, but another 340,000sqm of accommodation is expected to come on stream by 2013.

Because of the shortage of stock in the CBD rentals at Grade A apartments (typically in central areas) remained high until late 2008 at upto USD$50/sqm on the back of 10 consecutive years of uninterrupted growth of upto 5-10% annually. However, with the credit crunch and a reduction in the number of expats and expat budgets, and increase in stock rentals are on the way down.

New stock in 2009 includes the Crescent with @300 units in District 7 at rentals from USD$1,800 or USD$25/sqm and Kumho Asiana Plaza in the CBD with some 260 units.

Occupancies have fallen from 92% to 97% in 1st Quarter of 2009 with monthly rents @USD30/sqm for Grade A space; USD$25/sqm for Grade B space; and USD$17.5/sqm for Grade C space.

SERVICED APARTMENTS

The CBD (Central Business District) of Districts 1 & 3 and the greenery and clean air of the An Phú, Thảo Điền, Bình An Wards of District 2 (just over the Saigon Bridge @15-20 minute drive) are traditionally the most desirable residential areas. However, Phú Mỹ Hưng is becoming increasingly popular (@15-20 minute drive as are the area around the airport in Tân Bình (around the airport @20-30 minute drive), and in Phú Nhuận on the way to the CBD.

Serviced apartment projects in Ho Chi Minh City developed over the past decade have been for the provision of accommodation for rent to expatriates working in the city. Currently, the supply of completed quality accommodation remains limited and, as a result, most centrally located accommodation hits relatively high occupancy rates. There are about 20 Grade A and Grade B projects ranging from 5 to l8 floors, generally with good views of the city or the river. Most projects are located in District l, in the centre of the city, and within close proximity to the commercial centres. Grade C properties consists of about 10 projects with total of 400 units.

Existing Serviced Apartment Projects in the CBD

Name Location From Grade Units No.Fl Size-sq.m

Landmark 5B Ton Duc Thang, D1 Jun-95 A 65 9 62-225

Somerset Chancellor Ct 11 Mac Dinh Chi, D1 Sep-96 A 145 12 75-110

Sedona Suites 65 Le Loi, D1 Nov-96 A 89 10 70-140

Somerset HCMC 8A Nguyen Binh Khiem, D1 Oct-97 A 165 11 90-200

Indochine Park Tower 1 Le Quy Don, D3 May-98 A 55 17 140-300

Diamond Plaza 34 Le Duan, D 1 Feb-99 A 42 9 83-420

Norfolk Mansion 17-19-21 Ly Tu Trong, D1 May-98 A 124 11 100-280

City View 12 Mac Dinh Chi, D1 Sep-96 B 54 7 58-120

City View-New Wing 12 Mac Dinh Chi, D1 Sep-96 B 15 5 58-120

Saigon Sky Garden 20 Le Thanh Ton, D1 Jan-98 B 154 15 100-320

Garden View Court 101 Nguyen Du, D1 Mar-00 B 74 12 62-207

Saigon Court, 149 Nguyen Dinh Chieu, D3 Jun-98 B 66 12 66-131

Ownership and Investment Capital of Several Serviced Apartment Projects

Name Foreign Investor Nationality Investment-$m

Diamond Plaza Posco E&C Co. Ltd Korean 92*

Somerset Chancelor Liang Court / DBS / CapitaLand Ltd Singapore 42*

Somerset (Stamford Court) Stamford Residences Pte Ltd Singapore 32

Sedona Suites Keppel Land Ltd Singapore 42*

Indochine Park Tower Mulpha - AF Investment Ltd Malaysia 17*

The Landmark Hong Kong and Shanghai Hotels Hong Kong 30

Saigon Sky Garden ITOCHU Corp - MoriKiyo Co Ltd Japanese 37

City View LCD (Vietnam) Pte Ltd Singapore Singapore 14

Saigon Court Japan Int Dev Org Japanese 10

Norfolk Mansion RSC (Vietnam) Inv Pte Ltd Singapore 32

Garden View Court OHKI Corp & Hasegawa Co Ltd & Japanese 20

Tokyo Kamemono Co Ltd & Exe Design Co

* Includes investment cost of office and retail podium.

Demand Profile of Serviced Apartments

Apartment Name Principal Nationality of Tenants

The Landmark Japanese, American, English, Australian

Cityview Japanese (majority are single tenants)

Somerset Chancelor English, French, German, American

Sedona Suites Asian & Western

Central Point Teachers at International Business Schools

Somerset (Stamford Court) Japanese, Korean, Malaysian

Saigon Sky Garden Japanese, Korean, Taiwanese

Indochine Park Tower Japanese, Taiwanese

Norfolk Mansion Japanese, English, Korean, French

Diamond Plaza Australian, Japanese, Korean

Garden View Court Japanese

Saigon Court Japanese, Taiwanese

Unit Sizes and Types - The range of unit sizes varies between projects as follows : -

Range of Unit Sizes (sq.m.) by Grade

1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms

Grade A 60 - 101 80 - 136 110 - 300 110 - 420

Grade B 53 - 83 79 - 120 105 - 283 250

Most apartment projects offer a variety of unit types but most of the units have 2 or 3 bedrooms.

Unit Size by Type of Bedroom

Apartment Grade Studio 1 bed 2 bed 3 bed 4bed

Diamond Plaza A - 101 109-136 - 240

Somerset Chancellor Ct A - 73 97 - 110

Somerset HCMC A - - 85-110 136-142 170

Sedona Suites A - 60-68 80-98 110-120 -

Indochina Park Tower A - - - - 140-300

Landmark A 61-91 119 - - -

Norfolk Mansion A - - 88-109 130 250

Saigon Sky Garden B - 68-83 79-98 105-283 -

CityView B 33-45 56-67 90-110 - -

Central Point B - 62-68 85-120 - -

Garden View Court B - 62 98 207 -

Saigon Court B - 66 96 131-145 -

Most serviced apartments in the CBD do not have studio units. Among grade A serviced apartments, the largest proportion of units are 2 and 3 bedrooms while the bulk of grade B projects are 2 bedroom units.

Number of Units per Type of Bedroom for Selected Serviced Apartment Projects

Apartment Grade Studio 1 bed 2 bed 3 bed 4bed

Somerset Chancellor Ct A - 36 95 25 -

Somerset HCMC A - - 48 60 57

Indochina Park Tower A - - - 55 -

Landmark A - 55 10 - -

Norfolk Mansion A - - 96 24 4

Saigon Sky Garden B - 11 104 39 -

CityView B 15 30 25 - -

Saigon Court B - 15 30 8 -

Facilities

The following are the facilities found in the serviced apartment projects in the CBD. All the projects have a fitness centre/ gym and most have a swimming pool and children’s play area. Additional amenities such as retail and entertainment centre are available to some projects such as Diamond Plaza because of the retail centre within this development.

Range of Facilities Offered

Fitness gymnasium 100%

Swimming pool 92%

Children's playground / playroom 92%

Sauna / Steam room 83%

Daily maid service on business days 75%

Restaurant / bar 75%

Minimart 75%

Tennis court 67%

Business service centre 67%

100% Power backup 67%

Billiards room / Table tennis 42%

Shuttle bus service 33%

Jacuzzi 33%

Other activities 25%

Sports membership 17%

Retail and entertainment complex 8%

Facilities Available per Serviced Apartment Project

Facility / Service Diamond Plaza Somerset CC Somerset HCMC Sedona Suites IPT

Daily maid service - x x x x

Shuttle bus service - - x - -

Swimming pool x x x x x

Sauna/Steam room x x x x x

Jacuzzi - x x - -

Children's playground/room x x x x x

Fitness gymnasium x x x x x

Tennis court x x x x x

Billiards room/Table tennis - x - x -

Business service centre - x x x -

Restaurant / bar x x x x x

Minimart x x x x x

100% Power backup - - x x x

Sports membership - - - - -

Retail & Ent Complex x - - - -

Ttheatre, bowling centre - - - - -

Other activities - - - x -

Basketball, jogging, golf range - - - - -

Significant new luxury serviced apartment projects due to come on-line in Ho Chi Minh City over the next couple of years include : -

- Times Square (139)

- Kumho Asiana Plaza (260)

- River Garden (210)

- Sailing Tower (59)

- FOSCO Diplomats Building – 40 Phung Khac Khaon

- BB Dai Minh’s USD$14m Luxel Serviced Apartments, Saigon South

Range of Monthly Asking Rents per Unit ($)

Monthly Asking Rent / Unit:

1 bedroom 2 bedroom 3 bedroom 4 bedroom

Grade A 1,500-2,000 2,000-3,000 3,000-4,500 4,000+

Grade B 1,000-1,500 1,500-2,000 2,000-3,000 3,000+

Grade A Performance

Last Updated ( Wednesday, 29 April 2009 )

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