A Market to Watch
According to experts assessing the laws on Housing and Real Estate Business, foreigners’ newfound rights to purchase real estate in Vietnam, with access to a 50-year freehold, has given the high-end apartment market access to a new trove of investment capital.
High-end apartments in Vietnam are currently significantly better priced than in neighbouring markets, such as the Philippines, Singapore, Jakarta, and Kuala Lumpur, though the pace of economic development and foreign investment attraction in the central cities of Vietnam is easily comparable.
After investing in traditional markets like Thailand or Bali, investors seek for new opportunities to diversify their investment portfolios. Investors, such as Sembcorp, CapitaLand, Mapletree, Keppel Land, Meada, Mitsubishi, Kajima, and Creed Group, have all found attractive investment opportunities in Vietnam.
Moreover, a strong wave of sales programmes for foreigners and overseas Vietnamese were launched by real estate companies. Although there are still no specific statistics available, the number of foreigners buying houses has been rising sharply.
A testimonial from Yukio Kawate, a businessman from Japan, stated: “I often have long business trips to Danang. Therefore, I tend to stay in an apartment that can provide me with the necessary amenities, as well as 24/7 security and, preferably, with modern technology.
When the Law on Housing for foreigners in Vietnam changed, I was introduced by a friend to Luxury Apartment. Due to Alphanam’s investment policies, soon I can stay in my own apartment for 10 days per year, free of charge, while seeing 45 per cent of my investment returned to me in five years’ time.”
Real estate experts stated that 2017 is the year of seaside resort investment in Vietnam. Developers have their eyes set on building coastal resorts in prime locations to attract an increasing number of customers.
They are working on improving their designs, amenities, and quality of management to provide the market with high quality projects that strengthen clients’ trust.
The right choice
Projects that meet foreign investors’ criteria are often sold quickly. Luxury Apartment Danang success in the high-end coastal apartments segment is a good example. Its appeal to a wide variety of investors and clients is noticeable in its limited number of units left.
The 33-story tower is located on the pristine white sands of My Khe Beach as well as close to Danang’s central business district. A location favoured by investors who want to take advantage of the rising tourism, yet do not want to exclude the rising number of business visitors coming to the city.
From Luxury Apartment’s location, clients can easily travel to the city centre, the airport as well as the UNESCO world heritage sites Danang is known for.
The carefully designed units of Luxury Apartment are filled with natural light and are equipped and furnished by the world’s leading brands to ensure a luxury feel. This makes the decision to purchase, either in the form of investment or as personal accommodation.
Troy Griffiths, deputy general director of Savills Vietnam, noted that the serviced apartments sector in Vietnam has seen an 83% average occupancy rate in 2016.
With this number, Alphanam, the developer of Luxury Apartment, commits a 45% return on investment within five years to investors. From the sixth year, investors will receive 85% of the rental profits.
Currently, Alphanam is offering an attractive discount policy of up to 7.5% on the total value of a unit. With immediate and committed returns, the project is now among the best-selling high-end resort apartment projects in Danang.
Luxury Apartment is currently the only five-star apartment project on My Khe Beach, with the first apartments for residents having been handed over at the end of the second quarter of 2017.
Rental operations will start in October to ensure that the Four Points by Sheraton Hotel, situated adjacent to Luxury Apartment, will run in tandem with the serviced apartment units.
To bring this investment opportunity to foreign investors, Alphanam is headed to Singapore and will be at the Emerging Markets Property Show organised by PropertyGuru April 22-23 in the Marriott Tang Plaza Hotel.