Luxury condotels – new attractive investment channel!
The imminent launch of a luxury condotel project in Hà Nội has drawn a lot of attention in the real estate sector. Many expect the project to signal the beginning of a race in the high-end rental condotel segment.
Low value of traditional rental apartments
According to the assessment of real estate investors, leasing apartment is classified as a narrow segment in the property market but attractive and full of potential.
Data from Savills Việt Nam has shown that compared with other cities, Hà Nội is leading the real estate in the segment of rental apartment.
Profits generated by leasing of apartments in Hà Nội reach 7.4 per cent and is higher than the figure for HCM City, which is 5.8 per cent. It is also higher than the figures for other South East Asian cities, such as Jakarta (5.2 per cent), Kuala Lumpur (4.8 per cent), Manila (4.3 per cent), Bangkok (4.0 per cent) and Singapore (3.7 per cent).
This is expected to make the rental apartment market of Hà Nội more attractive than other provinces in the country or even other regional countries.
Caption 1: Luxury rental condotel’s prices have not shown signs of cooling down.
However, this potential market still presents many controversial issues.
According to commercial real estate services CBRE, despite having great demand, traditional rental apartments still show limitations, such as the lack of utility services and living space, thus tending to be devalued.
The price of a traditional apartment in Hà Nội is $10 per square metre per month, while a luxury rental condotel usually fetches about $24 to $34 per square metre per month.
CBRE’s Real Estate Market Survey for the first quarter of this year showed that a grade A rental apartment cost $31.84 per square meter, up 1 per cent quarter on quarter and up 1 per cent year on year. Meanwhile, the rental price of a grade B apartment fell slightly by 0.2 per cent quarter on quarter.
Throne of high-end rental property
Taking advantage of the trend of high-end rental condotel, Lan Anh, an experienced real estate investor, chose to buy a condotel of the unique 5 Seasons project, newly introduced by TNR Gold Season in Thanh Xuân district.
According to Lan Anh, the real estate market in Hà Nội has changed with many newly developed areas, but central areas such as Thanh Xuân district are still attractive. The prices of rental apartments in this area are among the highest in Hà Nội.
Moreover, the supply of these kinds of projects is scarce, because of the limited height of buildings in the inner-city districts. The number of apartments in Thanh Xuân district area for sale or for lease remains modest.
In addition, most of the projects here are offered for sale. After purchasing the apartments, the buyers lease them to other renters. Some other landlords then self-construct and self-manage their houses, offering them to foreigners.
Therefore, although there are many projects offered to customers, very few of them are well-equipped with adequate utilities, services or are professionally managed under international standards.
Caption 2: 5 Seasons offers 5-star services to each condotel.
Lan Anh said that the high-end condotel project such as 5 Seasons can overcome the limitations of traditional apartments.
Located at 47 Nguyễn Tuân street, residents can easily move into the centre of the city, as well as the suburbs through the main arterial roads, such as Nguyễn Trãi, Lê Văn Lương and Ring Road 3 Khuất Duy Tiến–Nội Bài, Cát Linh–Hà Đông highway.
“Not only is it a centrally-located high-end condotel project, but it also provides a wide range of exclusive, free amenities for life-time, such as a tropical swimming pool, gym, yoga, sauna, jacuzzi, a community recreation room with billiards table, table tennis facility, a library and a conference room,” Lan Anh said.
In addition to these, 5 Seasons also offers 5-star services to each household, including luxurious lounges, storage areas, Wifi service, in addition to the home-related services such as housekeeping, food services and laundry.
“With these special offers, investors will hardly find a second project with the same quality,” said Lan Anh.
For more information, as well as detailed advice, please contact:
An Phát Hưng - 093 6090 566
Phú Quý - 097 120 7979
Hải Phát - 097 123 5586