Hanoi
BSc (Hons) Est Man
MRICS
APREA (CREIF)
HCM Serviced Apartments |
Friday, 27 February 2009 | |
Round-Up
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.
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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
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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
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Last Updated ( Wednesday, 29 April 2009 ) |
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