The Hanoitimes - On April 23, one of the few luxury seaside projects in Vietnam heading to the emerging markets property exhibition in Singapore, Luxury Apartment Danang speaks to new investors on the Lion Island.
Singaporean investors note that the high-end real estate market in Vietnam has outstanding advantages in terms of development potential, as well as attractive prices compared to neighbouring countries. The seaside real estate segment possesses many of the resort features and high profitability that investors look for in emerging markets.
Singaporeans are seeking new opportunities to diversify their investment portfolio, often after having invested in previous emerging markets like Thailand or Bali. After the law of housing and real estate was changed for foreigners in Vietnam in July 2015, real estate ownership for foreigners has become much more transparent.
Leong Boon Hoe, CEO of CBRE Singapore, stated that owning property in Vietnam is a new trend in the city-state. In the ASEAN region, Vietnam is one of the more active countries in attracting foreign investment into the property market.
Troy Griffiths, deputy general director of Savills Vietnam, noted that the domestic serviced apartments sector has seen an 83 per cent average occupancy rate in 2016. With this number, Alphanam (the developer) offers a contract which commits a 45 per cent return on investment in five years to investors. From the sixth year, upon signing a second contract, investors receive 85 per cent of net rental profits.
Currently, Alphanam is offering an attractive discount policy up to 7.5 per cent on the total value of each unit. With immediate and guaranteed returns payable twice a year in July and December, Luxury Apartment is now among the best-selling high-end resort apartment projects in Danang.
Derek Seth Goldberg, one of the Singaporean clients of the project, said “This is my first property investment in Vietnam. The fact that this project is owned by Alphanam gives me a stronger belief in its quality as well as the legality of the promised rate of return on investment.”
Luxury Apartment is currently the only high-end apartment project on My Khe Beach, with the first apartments for residents being handed over at end of the second quarter of 2017. Its premium location allows for residents to easily travel to the city centre, the international airport as well as famous tourist attractions.
Along with having its own amenities for apartment guests, the project shares the building with high-end hotel Four Points by Sheraton, providing guests access not only to a rooftop pool, gym, and all-day-dining restaurant on the apartment side, but 5-star housekeeping, dry-cleaning/laundry, and in-room services, such as in-room dining. The apartment side is separated from the hotel for total privacy, including the lobby, yet it shares the luxury perks of a five-star hotel.
Translated by Anh Kiet