Following the completion of a mergers and acquisitions deal, Phat Dat now owns a rarified 3-frontage landbank at the intersection of Bach Dang, Tran Phu, and Le Hong Phong streets in Danang. On the so-called billion-dollar axis of trade-culture-tourism in the city center, Phat Dat will develop the first branded residence project.
As part of the development strategy of the Vietnamese Central Coast under which the government and the city People's Committee will develop this key economic zone, Phat Dat Real Estate Development JSC (HSX: PDR) has completed the formalities to officially own the 3-frontage "diamond landbank" on the busiest and most luxurious intersection in central Danang city.
The 3,000-square-metre property is located on Bach Dang Boulevard and owns the other two frontages facing Tran Phu and Le Hong Phong streets. This junction is considered to be the hub of economic, diplomatic, cultural and entertainment activities in Danang.
|The project owns the central position of all economic, diplomatic, cultural and entertainment activities in Danang |
With its location, the project offers easy connectivity to the city's arterial roads and bridges crossing the Han River, such as Han River Bridge, Dragon Bridge, and Tran Thi Ly Bridge. These are all critical infrastructure works that contribute to changing the face of the most liveable city in Vietnam.
The project also benefits from all of the nearby high-class external facilities that form the city’s north-south chain of service-commerce-tourism along the two banks of the Han River. On the west bank of the river, the Civic Center, which was embellished and developed from the existing centre area, accommodates several highlights around the City Square like the Administrative Center, Dien Hai Citadel, museums, cultural and historical works, markets, buildings for hotels, offices, and commercial services, among others.
On the east side, the central business district is home to the city's main economic and financial buildings, high-rise office and commercial service areas, and hotels, embracing the International Square and highlighting the new embellished high-rise centre. Together, all these create a 24/7 urban area, where Danang's international trade and integration activities take place.
According to a representative of Phat Dat, a branded residence project will be developed on this extravagant land, which consists of luxurious apartments and a 5-star hotel in limited quantities, managed and operated by the world's most famous corporations.
After establishing a prominent brand in high-end and mid-end residential real estate, Phat Dat heads up to the branded residence line, inclusively following shifting trends in the global luxury real estate market. That is, in addition to prime locations in coastal areas or resorts, branded residence projects are expanding into big cities. According to a survey by Savills, more than 60 per cent of branded residences worldwide are concentrated in big cities.
The number of branded residences is increasing rapidly, especially since COVID-19 has partly changed the experiential needs of the super-rich. Branded residences perfectly meet the desire to experience a luxurious and comfortable living space with complete services and high-class facilities from international hotel operators.
Also, according to a report by Savills, Vietnam is among the top 10 fastest-growing branded residence markets in the world. The annual supply of branded residences here increased by 11 per cent on average from 2017. By the first quarter of 2021, Vietnam had 24 branded real estate projects, mainly in coastal resorts.
Hanoi and Ho Chi Minh City are already pretty familiar with these product lines, and Danang will be the next city to welcome the very first branded residence project pioneered by Phat Dat, which will boost the regional real estate market and create a premise for explosive growth in the future.
This segment requires developers to not only have valuable landholdings or finance but also extensive experience. Phat Dat is one of the few investors with the requisite capabilities to implement high-end real estate projects across the country and implementing this unique project promises will outstanding sales efficiency and quick cash flow for the company.
By Lam Nhi