Urban Green: Beyond Property
The picture of the HCMC real estate market in 2021 gradually closes with the momentum expected to peak soon when four prime land lots at north of Thu Thiem have just created a historic auction, not only by attracting many big companies compete, but also in value, land plots of 3-5, 3-8, 3-9, 3-12 respectively brought in a shocking total of 37,346 billion VND (1,602 million USD), 7 times higher than starting bid.
What this means?
The results of the auction of 4 land lots in Thu Thiem, Ho Chi Minh City in the past few days shocks the real estate market when it officially established the historical price of the country.
Out of them, lots 3-8 and 3-5 respectively reached VND 470-590 million per m2, 3-9 reached a milestone of VND 1 billion per m2 of capital – the highest on this peninsula. Up to lot 3-12, Viet Star Real Estate Investment Co., Ltd (a subsidiary of Tan Hoang Minh Group) won the auction at VND 24,500 billion (2.4 billion per m2), 8.3 times higher than the starting bid, has reached the market price ceiling in Ho Chi Minh City, and is also the record for the highest land price in Vietnam.
According to the detailed planning project of 1/500 scale, the land lot 3-12 has a total construction floor area (GFA) of 90,000 m2, the land use coefficient is 8.95 times and the number of apartments is expected to be 570 apartments. Thus, the price of each apartment will be about VND 42.9 billion, equivalent to about VND 340 million per m2 with a construction rate of 80% GFA. This is the price excluding construction costs and profits.
When the above information has just hit the market, immediate projects in neighboring land lots such as The River Thu Thiem (lot 3-15) has close the remaining units sale to adjust the price when the current price is deemed too different.
The level of 2.4 billion VND per m2 of land in Thu Thiem has just been successfully auctioned, pushing land prices to a record high, affecting all housing segments, according to experts.
What effects are foreseen?
- More and more inevitably, the migration wave of affordable, mid-range or high-end apartments will continue to follow the decentralization away from the center: to the West (Thu Duc) or to the South (District 7, Nha Be, South Saigon)
- If the price ceiling is already in place, the market quickly establishes a floor price when projects in suburban districts like Thu Duc or Nha Be have been fluctuating at VND 60-65 million/m2 for mid-end projects
- It is difficult for settler-buyers to get the mid-high-end segment if they do not accept the choice of projects located far from the center or more necessary, must rely on financial support from banks
- Investor-buyers of real estate also need to follow the migration of the settler-group, to make long-term investments with stronger financial potential
- The central real estate market will only be for the super-rich, exploiting renting, the liquidity can be reduced
In terms of foresight, the above urban decentralization is not a new thing, but the market still has groups of customers resisting the fast update of the market when expected a more reasonable price from new projects. Unfortunately, over time, this becomes more and more impossible. Now as an affirmation, as a selection of individuals who are best adapted to stay with nature: accepting the rising price, accepting the project’s location far from the center is the only option for the settler-group. Once this group has agreed on the price, the investor group follows or not doesn’t matter much.
That said, it does not mean the settler group has to lower the requirements and demands for a better quality.
On the contrary, time and reality prove that, when real estate prices increase with the acceptance of settler-buyers, requirements for construction quality as well as life experience are strictly required and gradually become more specialized and approach higher international quality.
For example, recently, it can be seen that projects that meet high-class, sustainable utilities with nature and green and good living standards such as:
- Celesta Heights, Nha Be with the price of VND 60-65 million/m2 with less construction density and great utility investment from Singapore developer, Keppel Land
- Beverly at Vinhomes Grand Park with a price of VND 60-65 million/m2 with a complete ecosystem, 36ha park from Vinhomes
The price increase has to be worthy, that’s all happening in the mid to high end segments at the moment
And with Urban Green, Kusto Home’s philosophy of Beyond Property has been shown to be extremely successful with its first project, Diamond Island:
- Total area 79,944.6 m2
- The construction density of the total area only accounts for about 13.5%, the remaining 86.5% is for green areas and public areas
- About 1,323 standard apartments and 222 officetel apartments
- Recreate a peaceful oasis in the heart of the bustling city
- The transaction price on the secondary market increases every year by 10%. Some rare apartments with large area have higher prices
Internal facilities with 3 swimming pools: Olympic, Resort and Pirate Ship for children. In addition, the supermarket ecosystem Vin Mart, Pharmacity and many brands have been operating and getting more and more optimized
Next to Diamond Island, how will the Beyond Property philosophy applied to the second project in Ho Chi Minh City of Kusto Home, Urban Green?
Urban: the city center
Green: the suburbs, although far from the center, in exchange for peace and more greenery
But, when Urban meets Green, it will form Urban Green, an intersection in the middle, not too noisy and bustling of the center, but also not too far, having both proximity, convenience and distance, enough to fully enjoy the green, relaxing and quality utilities, live to the fullest to reach further!
This philosophy is completely suitable for settlers who are successful young people, young families in early middle age with new successes in their careers. This will be a worthy reward for them, as well as a suitable place to live when:
STRATEGIC LOCATION FOR CITY LIVING STYLE
- Located at Thu Duc, only 10 minutes to the administrative and commercial center of Ho Chi Minh City
- Located on the National Highway 13 arterial line with an expansion plan to 60m, connecting the center of Ho Chi Minh City with Thu Duc and Binh Duong New City
- This is also a location in the planning of Metro 3B, Urban Green is only about 500m from 2 stations of this Metro line. The connection from the project to the whole city is extremely convenient in the future
- Adjacent to many external utilities, possessing a series of internal utilities and shopping streets, Urban Green creates conditions for residents to satisfy all life needs easily and without wasting time traveling
Location of Urban Green project
558 apartments with L-shaped structure including 2 branches. Each branch includes:
- Upper branch includes: 13 apartments/floor
- The lower right branch includes: 15 apartments/floor
- 4 elevators
- Average 3.5 units/elevator/floor
Great facilities are invested methodically, when the construction density is only 30%
Only 558 apartments in the first launch with an expected price of 60-65 million VND/m2 for apartments from 1-4 bedrooms, still just like a drop in the ocean with a high need for this type of quality products at this mid-high-end segment.
In addition, the price increase will be established immediately and strongly while there is still phase 2 with Tower Aster including 177 apartments.
The Tower Aster utility, not less than the Tower Bliss when it comes to owning a private swimming pool and a rooftop garden overlooking the city center, Landmark 81 and New Year’s Eve fireworks
This is a great opportunity to own a new home for Vietnamese young families. A place to live fully to break through and achieve new achievements in life’s journey. In addition, this is also a great investment opportunity when the residential demand is always high in this segment and the supply is too scarce.
100 million VND/unit (~4,500 USD) is the refundable booking amount to participate in the first launch of the project. With limited quantity, priority to choose the unit first is for those who come first and earlier.
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