|
Real estate ‘has long-term potential’
A leading serviced apartment operator, Ascott International has operated in Viet Nam since 1994 and currently has five properties with a total of 818 units, in both HCM City and Ha Noi. The firm’s country manager, Eddie Lim, spoke to the Viet Nam News about the domestic property market.
What inspired Ascott to develop serviced residences in Viet Nam?
Ascott has great confidence in the Vietnamese property market, which explains our presence here for 15 years.
Viet Nam’s large population of 85 million, with a high level of literacy, relatively low labour costs, and a stable Government which actively promotes economic ties, are key factors that continue to attract foreign investors. This is why many investors believe that Viet Nam is the market with the greatest potential after China.
As foreign direct investment increases, there will be a higher demand for accommodation, including serviced residences. Therefore, Viet Nam remains a key growth market for Ascott.
Our clients are business travellers on relocation or project assignments as well as leisure travellers. In Ha Noi, travellers can choose to stay at Somerset Grand Ha Noi, Somerset West Lake and Somerset Hoa Binh and when they are in HCM City, they can stay at Somerset Chancellor Court and Somerset HCM City.
How do you assess the development of the domestic property market currently? What trends do you see for the future?
The Vietnamese property market has been very volatile in the last few years. Property prices peaked in the fourth quarter of 2007 and the first quarter of 2008 due to strong demand and speculation. In the second quarter of 2008, they started to decline.
The property market took a further tumble when US financial institutions were hit with insolvency issues, and prices slid further when banks started to become more stringent with real estate lending, causing speculators to leave the market.
Now, property prices have reached a realistic level which makes it a good time for long-term investors to enter the market again. Barring any unforeseen circumstances, the trend for the property market is heading upward.
How do you see the future of the residential market in Viet Nam?
As FDI grows and multinational companies set up or expand their operations here, the demand for quality, international-class accommodation from expatriates and business travellers will increase, especially in primary and secondary cities.
Along with serviced residences, does your company plan to develop other business prospects in Viet Nam?
We have a new 232-unit serviced residence property, the Somerset Sai Gon City, scheduled to open in HCM City in 2012, and we will continue to look for suitable opportunities to grow our presence here
vietnamnews
|
