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Tag: Apartments

  • Ho Chi Minh City Set to Welcome 6,000 New Prime Apartments This Year

    Ho Chi Minh City Set to Welcome 6,000 New Prime Apartments This Year

    In a dynamic shift for Ho Chi Minh City’s real estate sector, JLL projects the introduction of an impressive 5,500 to 6,000 high-end apartments and around 1,300 RBL (residential building lot) units by 2025. This surge is anticipated following significant infrastructure completions and the city’s proactive measures to address legal bottlenecks affecting 22 pivotal projects.

    Breaking Ground: HCMC’s Push for Affordable Housing

    Despite being primarily characterized by high-end residential offerings, the report hints that more affordable housing projects are on the horizon, particularly in the outer districts of the city. JLL notes that attractive sales strategies are likely to propel buyer interest, a welcome development for those longing for more budget-friendly options.

    Market Insights: Trends in the High-End Segment

    During the first quarter of 2025, Ho Chi Minh City saw a mere 118 transactions in the high-end apartment market. The excitement, however, is palpable with soft launches from reputable developers such as Eaton Park and Lancaster Legacy anticipated to attract eager buyers.

    In the RBL sector, just 29 transactions were logged, yet Phase 2 of L’Arcade shone brightly with all units sold. The limited primary inventory remains a hurdle, presenting high unit values that pose access challenges for many potential buyers.

    Supply Dynamics: The Search for Balance

    The supply of high-end apartments showcased limited growth in Q1 2025, introducing only 82 new launches, including Kieu by Kita in the CBD fringe. Activity remains vibrant ahead of several large-scale project launches in Q2, with developers collaborating with distribution agents to maximize reach for upcoming ventures such as The Global City’s Sola by Masterise Homes and Keppel’s FORESTA by Khang Dien.

    Price Momentum: Reflecting Investor Confidence

    Price trends are also noteworthy, with the primary cost for high-end apartments increasing by 2.0% quarter-on-quarter to USD 5,104 per square meter. This uptick is bolstered by the handover of 630 units from the ultra-luxury Grand Marina, which saw completed-home prices jump by 5.7% quarter-on-quarter, now standing at USD 3,866 per square meter. Even in the landed property market, primary prices climbed 1.4% quarter-on-quarter and 6.6% year-on-year, illustrating sustained investor confidence.

    Questions & Answers

    What type of housing projects are expected to emerge in Ho Chi Minh City by 2025?
    JLL anticipates a mix of high-end apartments and an important influx of more affordable housing options, especially in the outer districts, to cater to diverse buyer needs.

    How did the high-end apartment market perform in Q1 2025?
    The market recorded only 118 successful transactions, though interest remains healthy with exciting upcoming launches like Eaton Park and Lancaster Legacy drawing attention.

    What factors are driving price increases in Ho Chi Minh City’s real estate market?
    The price growth is largely attributed to the completion of high-end projects like Grand Marina, driving up overall completed-home prices and reflecting strong investor confidence in both high-end and landed property segments.

  • Hong Kong Real Estate Sees Record-breaking Sales Amid Developer’s Financial Struggles

    Hong Kong Real Estate Sees Record-breaking Sales Amid Developer’s Financial Struggles

    All 138 units in the Wong Chuk Hang neighborhood were sold within just seven hours of their launch on Saturday morning, raising a staggering HK$1.53 billion (US$196 million), as reported by property agents in the South China Morning Post.

    Record-Setting Prices and Swift Sales

    The new apartments, which feature two to four bedrooms, were priced between HK$8.5 million and HK$37.2 million each. This pricing resulted in an average cost of approximately HK$21,000 per square foot (US$28,800 per square meter)—a remarkable record low for new homes in the area, according to Bloomberg. This price point was about 4.5% less than that of CK Asset Holdings’ Blue Coast project, which ignited a buying spree in the same locale last year.

    In a splendid turn of events, Deep Water Pavilia was developed by New World, the flagship real estate company of the billionaire Cheng family and one of Hong Kong’s “big four” developers, alongside Empire Group Holdings, CSI Properties, Lai Sun Development, and MTR Corporation.

    Investor Interest and Market Dynamics

    Louis Chan Wing-kit, the CEO of Centaline Property Agency, noted that the project has attracted both end-users and investors alike, thanks to its competitive pricing and prime location directly above a mass transit railway station. The allure was further cemented by the fact that around 40% of buyers were investors seeking rental income, a reflection of current market trends, as reported by Sammy Po Siu-ming, CEO of Midland Realty’s residential division for Hong Kong and Macau.

    The robust sales are a welcome financial boost for New World, which has been facing rising financial pressures. Just weeks prior, in late May, the developer announced it would defer US$77.2 million in coupon payments on four perpetual bonds due that month. New World became the second Hong Kong property firm to take such a step in recent years, highlighting the ongoing struggles within the city’s property market plagued by price declines, sluggish sales, and high-interest rates.

    New World faces significant challenges, holding one of the highest debt ratios among its competitors. The company is under increasing pressure to manage its HK$87.5 billion in borrowings, especially after pledging around 40 properties—including its flagship commercial complex at Victoria Dockside—as collateral.

    Navigating Succession and New Horizons

    Amidst these financial challenges, the Cheng family—Hong Kong’s third-richest clan with an estimated fortune of US$19.5 billion according to Forbes—finds itself navigating complex succession issues. The group underwent two CEO changes last year following a record HK$19.7 billion loss for the fiscal year ending June 2024, with Adrien Cheng, once seen as the heir apparent, stepping down. His successor lasted only two months, leaving many eyebrows raised about the family’s leadership stability.

    With these developments unfolding, it seems that the property’s rapid turnover is not just a fleeting trend, but perhaps the beginning of a new era in the Hong Kong real estate landscape.

    Questions & Answers

    What types of apartments were sold in Wong Chuk Hang?
    The sold apartments ranged from two to four bedrooms.

    How much money did New World raise from the sales?
    New World raised a total of HK$1.53 billion (US$196 million) from the sale of the 138 units.

    What financial challenges is New World facing?
    New World is dealing with high debts, including HK$87.5 billion in borrowings, and has deferred coupon payments on bonds amid a struggling property market.

  • Prices Plummet in Half of Hanoi’s Historic Apartment Projects

    Prices Plummet in Half of Hanoi’s Historic Apartment Projects

    Hanoi Real Estate Market Sees Moderate Price Declines Amid Shifting Demand

    Recent data reveal a slight downturn in property prices across Hanoi, signaling a shift in consumer trends within the real estate sector. According to a comprehensive analysis of over 400 projects, average prices have dropped by 1% compared to the last quarter of 2024. This trend aligns with findings from property listing platform Batdongsan, which also reports notable price decreases in several residential projects.

    Consistent Price Drops for High-Profile Developments

    In-depth surveys by VnExpress highlight year-on-year price contractions of 2-6% across sought-after projects such as Hanoi Paragon, Mipec Rubik 360, and Master West Heights. For instance, a typical 64-square-meter apartment in Long Bien District is now listed at VND4.4 billion (approximately $169,400), reflecting a decline of 3.9% from the previous year.

    Market Stability Amid Changing Seller Strategies

    While prices of new properties on the primary market remain stable at VND79 million per square meter, many apartment sellers are recalibrating their strategies. Do Thu Hang, Senior Director of Advisory Services at Savills Hanoi, notes that sellers are increasingly seeking to make quick profits and diversify their investments. This shift has prompted many to reconsider their pricing, especially as demand softens.

    Nguyen Hoai An, a senior director at property consultancy CBRE Hanoi, observes that prices of older apartments have surged by 40% over the past two years. However, she warns that the absence of supportive market factors suggests difficulty in maintaining such growth. “Many sellers no longer anticipate large profits and may struggle to attract buyers without price reductions,” she explained.

    Speculative Buyers Face Financial Challenges

    Pham Duc Toan, CEO of developer EZ Property, points out that many current apartment owners are speculators looking to capitalize on quick returns. With only 15-20% of the purchase price paid upfront, some buyers find themselves unable to meet subsequent payment obligations and are thus compelled to offload their properties.

    New Developments Drive Market Dynamics

    The market is further influenced by an influx of new condo supply, with Savills projecting the addition of 7,400 new units by the end of the year, primarily in suburban districts like Dong Anh, Hoai Duc, and Hoang Mai. Looking ahead to 2026, industry experts anticipate that primary market prices may decline as developers pivot toward affordable housing to better align with actual market demand.

    “Reintroducing units priced below VND2 billion will help create a more sustainable balance between supply and demand,” Hang added, emphasizing the importance of catering to underserved segments.

    Implications for the Retail Sector

    This evolving landscape in Hanoi’s real estate market may have significant implications for the broader retail sector. As consumer trends shift and property values adjust, retailers will need to adapt their strategies to align with changing demographics and purchasing power. The current dynamics underscore the necessity for brands to remain agile and responsive in an increasingly competitive environment.

  • Multi-million dollar apartments catch super-rich’s eyes

    Multi-million dollar apartments catch super-rich’s eyes

    Wealthy people are splurging millions of dollars to buy ultra-luxury apartments mostly as second homes. Hoa, owner of a house and a villa in HCMC’s Thu Duc City, said she recently bought a VND30-billion (US$1.3 million) apartment.

    Located on the 27th floor of a luxury project, the 200-square-meter unit offers unobstructed views of the Saigon River.

    It had four bedrooms, but Hoa took one down to expand the kitchen and living space.

    She topped it off with bespoke interiors at a cost of over VND5 billion, including a VND1 billion lighting system imported from Italy, two exotic paintings that cost hundreds of millions of dong and a $20,000 speaker system.

    It took her over a year to finish decorating, she said.

    “The apartment’s beautiful views, convenient car parking and relaxing atmosphere make it the ideal place for me to entertain friends and guests,”

    A broker has asked to buy her apartment for VND35 billion, but she refused.

    “I want to keep it for myself,” she said.

    Truong, an experienced investor, bought a penthouse in the heart of District 1 as a second home besides his 300 sq.m villa in the south of the city.

    The 200-sq-m unit cost him VND25 billion and another VND8 billion for decoration and interiors, he said.

    “I spent VND33 billion on this unit because of its amenities, security and views. I can watch firework displays right from here, something that townhouses and villas cannot provide.”

    Rising trend

    Luxury apartments have recently become very popular with successful businesspersons, NeloDécor, an architecture and interior design firm specializing in high-class properties, said.

    The company has just finished decorating a $2-million sky villa for an entrepreneur for VND12 billion.

    Previously it designed and built the interiors for a penthouse for an affluent family, which cost $2.5 million to complete and another $1 million for interiors and smart devices.

    It is not uncommon for affluent people to spend $1-2 million for buying an apartment in the central business district and hundreds of thousands or millions of dollars more for decorating and doing the interiors, NeloDécor CEO Le Duy Van said.

    They are mostly super rich and already own multiple properties, and so have extensive demands, he said.

    Amenities, security and views are key factors for them while choosing to buy, he said.

    Most of them hire designers, but some design on their own, and are ready to knock down and rebuild multiple times until they are happy.

    Pham Lam, CEO of property consultancy DKRA Vietnam, agreed that demand for luxury apartments is rising.

    In some cases, properties serve the same purpose as expensive jewelry and supercars, he said.

    Rising supply

    Consultancy Cushman & Wakefield expects supply of luxury apartments in HCMC to rise this year, especially in the central business districts and Thu Thiem Peninsula.

    Their prices will surge, too, with new projects constantly rising to record levels, it said.

    Average price tags for luxury apartments surged by 23 percent year-on-year to VND143.6 million per square meter in the last quarter of 2021. For ultra-luxury properties, they went up to VND400 million.

    Eddie Lim, CEO of real estate developer Viva Land, said the number of rich people in Vietnam is rising faster than the global average.

    Vietnam is expected to have 1,551 ultra-high net worth individuals (UHNWIs) by 2026, compared to 1,234 last year, according to an estimate contained in a Wealth Report released by U.K. property consultancy Knight Frank.

    The company also predicts that the number of rich people, or those with a net worth of $1 million or more, including their primary residence, will rise sharply by more than 59 percent from last year to 114,807 in 2026.

    The Vietnamese luxury apartment market is also promising for foreigners, especially rich Asians, thanks to the country’s rapid economic growth and more competitive pricing than Singapore, Hong Kong, Japan and China.

  • Singapore apartments main target of Indonesian property investors

    Singapore apartments main target of Indonesian property investors

    Indonesian property investors would prefer to go to Singapore if they want to invest in apartments and to Australia to buy houses to be leased out, a survey has said.

    Profit, better guaranteed, is the main reason for investing abroad, the survey Property Affordability Sentiment Index by Rumah.com said here on Sunday.

    Country Manager of Rumah.com Wasudewan said the Indonesian investors chose to invest in Singapore on better infrastructure, stability and security that would be needed by the would be tenants.

    Property Affordability Sentiment Index is an annual survey held by Rumah.com in cooperation with research center Intuit Research of Singapore. The survey involved 1,030 respondents in November-December 2016.

    “Singapore has good transport access locally and internationally. For that Singapore has received an appreciation as the Best Location in Asia for expatriates and the 25th best in the world, according to a survey on Quality of Living by Mercer early this year,” Wasudewan said.

    The results of the surveys matched data from Cushman & Wakefield, an international property consultancy company, which said that in the first half of 2016, Indonesians bought 189 property buildings of various categories in Singapore, or a 23 percent increase compared with the same period in the previous year.

    Purchases by Chinese and Malaysians declines, but purchases by Indonesians rose 19 percent in the second quarter of 2016.

    According to property company Propnex Realty Pte, as quoted from PropertyGuru.com.sg, which handles the sales of luxurious condominiums OUE Twin Peaks in the Orchard Road, Singapore, the developer of the condominiums has succeeded in disposing of almost 50 percent of 86 units built in the first phase at a price of 4 million Singaporean dollar per unit and Indonesians are the main foreign buyers, Wasudewan said.

    He said growing number of Indonesians buy property abroad as technology makes it easier to have information about market in other countries. Indonesians buy property abroad especially in Singapore for commercial purpose.

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  • Indonesia plans emergency law to let foreigners buy apartments

    Indonesia plans emergency law to let foreigners buy apartments

    Property sector needs reform to attract investments, says minister. Indonesia plans to issue an emergency law – known as a perppu – to break an impasse of more than a decade in efforts to streamline unfriendly laws as the country aims to allow foreigners to purchase apartments in Indonesia.

    The government had in the past repeatedly tried to move forward and set regulations to allow foreigners to own apartments in South-east Asia’s biggest economy.

    But they were never able to get these implemented because the basic stipulation under Indonesia’s 1960 Agrarian Law is that foreigners just cannot own homes in the country, Coordinating Minister for Political, Legal and Security Affairs Luhut Pandjaitan said.

    “But the era has changed now. The property sector needs a reform so we could attract foreign investment. Foreigners should be allowed to buy apartments – but not landed houses – even if they don’t hold Kitas (Indonesia’s residence permit),” Luhut told The Straits Times.

    “It is similar to that in Singapore,” he added.

    Indonesia’s Constitution gives the President the right to issue a rule in lieu of law (perppu) when he determines that an emergency in the country requires it.

    A perppu is immediately effective after the President signs it, and Parliament can either let it remain effective or end it within a year after the perppu is issued.

    Luhut said the perppu that covers a new rule allowing foreign investors to buy apartments is one of between four and five perppu that Indonesia plans to issue by August, to resolve other obstacles hindering the government reform programme.

    “This is a revolutionary step to address such problems,” he said.

    A so-called debottlenecking working committee has been set up to identify problematic and protracted clauses in all laws.

    “We will comb all legislations that overlap with each other,” Purbaya Yudhi Sadewa, who heads the working committee, told The Straits Times.

    The perppu will supersede only the problematic clauses in each law and serve to bypass them, Luhut said.

    He added that one perppu could address problems in five to more than 10 existing laws, and about 80 per cent to 90 per cent of the existing laws can be harmonised.

    Issuing perppu is a normal practice that some foreign governments, such as the United States, also use, Luhut said, adding that the term used in the US is “presidential Act”.

    In May, President Joko Widodo signed a perppu that allows courts to increase penalties for sex crimes, which include for the first time chemical castration and death sentence, after the media highlighted a growing number of attacks against children.

    Previously, the maximum sentence for a child sex offence was 15 years’ jail. Indonesians have mostly welcomed the move.

    Amending existing laws through the normal process, by proposing Bills to Indonesian Parliament, can drag on for several years, and in some cases, proposed Bills were thrown out.

    Numerous government reform programs in Indonesia in the past decades have hit a snag due to conflicting laws that need amendment.

  • Indonesia’s ex-President Habibie to build billion-dollar apartment project in Batam

    Indonesia’s ex-President Habibie to build billion-dollar apartment project in Batam

    The company of former president BJ Habibie, who ruled Indonesia from 1998-1999, is set to built luxury apartments worth a total of US$1 billion (S$1.42 billion) in Batam.

    The project, which features 11 towers of apartments, offices, hotel rooms and a hospital on a nine-hectare plot of land, aims to attract buyers from Indonesia’s neighboring countries, particularly Singapore.

    Work on the project, called Meisterstadt, will start in the middle of this year, Ilham Akbar Habibie, President Habibie’s son and commissioner of his company, Pollux Habibie International, told thejakartapost.com at the project’s launch in Batam on Saturday that the Meisterstadt superblock would be built in four stages.

    “Initially, the plan to construct a hospital in the superblock was in the last will and testament of my mum (the late Ainun Habibie) it will be implemented in the third stage of this superblock’s construction,” said Ilham.

    Pollux Properties Indonesia president commissioner Muladi, who was known as Habibie’s right-hand man during the latter’s presidential term, Batam Free Trade Zone Authority (BPK FTZ) head Mustofa Widjaja, Batam mayor Ahmad Dahlan and Meisterstadt Batam operational general manager Yosef Eduardus attended the ceremony.

    Ilham said the property business in Batam was promising because the area was quite close to Singapore. The developer hoped Singaporeans would be the main buyers of the apartments.

    “Singapore now has 5 million residents and it has continued to grow. We hope that we can benefit the country’s population, particularly in the property sector,” said Ilham.

    He added: “It happened in Hong Kong in the 1950s, during which the region’s population had flown to several provinces of the Chinese mainland near Hong Kong. We’ve now seen a similar situation in Guangdong, in which industries and businesses from Hong Kong have flown to the city.

    “Such an effect will happen between Singapore and Batam.”

    Ilham said the company hoped that a third of the apartments in the superblock complex would be bought by foreigners while the remainder would be marketed to local buyers.

    As many as 1,575 apartments in two of the towers, which will be built in the first stage of the construction project, have been booked by potential buyers with VVIP pass cards who attended the launch. In total, 1,874 VVIP pass cards were issued for the event.

    Three sizes of apartments, namely 24.82 sq m, 42.51 sq m and 51.59 sq m, will be built in the first stage of construction from 2016 to 2019. Prices for the units start at Rp 400 million (S$41,618).

    Batam mayor Ahmad said it was time for Batam to shift from landed to vertical housing due to its limited land.

    “The land in Batam is very limited. For our urban planning, we have recommended residences with the tower or vertical building concept. From the business aspect, it is very prospective because many noted developers have built their projects here. It means they see a huge market potential here,” said the Batam mayor.

    Mustofa said the authorities need to accommodate the need for premium residential compounds in Batam.

    “The growth of the number of Batam residents is the fastest in the world because of migration. To anticipate such a rapid growth, the Batam administration will also complement this city with toll roads and overpasses, which have been included in the national strategic project,” he said.

    “The toll roads and overpasses are aimed at anticipating traffic congestion in the next 10 years.”