Indochina Land battles sluggish market

March 13, 2013 | 15:21
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Indochina Land continues to venture into Vietnam’s sluggish property market with a plan to launch a new high-end housing development in Ho Chi Minh City.

"We see 2013 as another promising year for the real estate business, taking cautious and strategic steps and committing strongly to quality as the premium developer."
-Peter Ryder,CEO of Indochina Capital

But rather than another foray into high-rise mixed-use properties or vacation homes as it has over the past few years, Indochina Land will sell its first residential villa development, which the company claimed has “received very positive feedback despite challenging market conditions”.

Indochina Land has not fixed the launching date and the prices, only stating that the 8-hectare site is in District 9 and will include three and four-bedroom concepts on land areas ranging from 193 square metres to 1,000sqm.

VIR has learnt that Indochina Land acquired this villa development rights from Khang Dien Housing Investment and Trading Joint Stock Company, which had launched 191 villas of the project for sales two years ago under the Goldora Villa brand.

Following the takeover, Indochina Land is working on rebranding the development as well as appointing an international consultant to design common areas with the goal of having a master plan which accommodates a complete lifestyle concept for the entire family.

“Our success has been based on a very simple principles, develop well located and innovative communities with an unwavering commitment to quality, “ said Michael Piro, vice president of Indochina Land.

“The market has grown to recognize and value our promise and should expect nothing less out of our upcoming community in District 9.  I am very excited about this upcoming launch and I believe the market will share in my excitement when we unveil this development later this year,” he added.

Indochina Land is expanding its property portfolio at a time when the real estate market has been sluggish for over two years with construction of many projects put on hold and housing sales have almost come to a standstill.

The distressed property market has prompted government rescue initiatives which include plans to earmark more credits to homebuyers and tax incentives for developers. Despite the gloomy market and weak buyer sentiment, Indochina Land continues to show its confidence in high-end projects.  

“We see 2013 as another promising year for the real estate business, taking cautious and strategic steps and committing strongly to quality as the premium developer,” said Peter Ryder, CEO of Indochina Capital, the mother company of Indochina Land.

Last year was a challenging year for newly emergent and undercapitalised developers, but experienced developers like Indochina Land kept witnessed positive returns and performance from quality projects.

The company last year recorded residential sales revenue across the portfolio at $40 million for the year. It completed construction of the Indochina Plaza Hanoi, which earned $94 million in sales since launching in November 2009.

While most other second home projects saw no sales activities, Indochina Land’s Hyatt Regency Danang Residences generated more than 20 sales in 2012 for a total value of $10.3 million, bringing the total sales revenue to $78 million. It has also been able to sell 10 out of 27 villas at the Six-Senses Con Dao Resort with one villa sales recorded in 2012, for a total value of $13.55 million.

By Quynh Chau

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