Signs of life in bleak market

A range of projects in Hanoi were just unveiled or opened for sale, with the expectation that reasonable price, prime location, prestige brand name of the developers, and good progress would attract buyers.

Construction has recently started on the $2.5 billion Starlake project next to the Hanoi’s west lake, after many years in the planning.According to Lee Kwon Sang, general director of THT Development Company, the project developer, the start of this project represents a stronger commitment from Korean companies to invest in Vietnam.

“Even though the real estate market in Vietnam is in its downturn trend we [the developers] still saw a positive future of this project,” Sang said.

Plans call for the Starlake project to become a modern and environmental friendly urban area for 25,000 residents located in the west of Hanoi.Covering 207 hectares, the project will consist of roads, promenade, parks, trees and lakes, open space for the public service activities and the new headquarters buildings of ministries.

Meanwhile, the Singaporean developer CapitaLand has recently top out its Mulberry Lane projects, signifying the completion of the framework of five blocks with total of 1,478 apartments.

Yip Hoong Mun, deputy CEO of CapitaLand Vietnam Holdings, said that the top out was an important milestone of progress amid the market’s difficulty. CapitaLand, he said, has kept right on schedule while so many other projects face delays. Mun said CapitaLand plans to start a new project in Hanoi in the coming months.

Due to the downturn of the real estate market, Mun said, the company will use a different concept of designing which can be more attractive to customers.

CapitaLand is among the few developers that have kept its price unchanged even pressed by the plummeting prices of other developers. “Apart from price, customers now are also paying attention to the schedule of the project, and we are outstanding because we are on schedule, despite the economic downturn,” Mun said.

He added that in the current difficult market of Vietnam, the company could restructure plans in order to lower the price, but still preserve the quality and the project’s schedule. Domestic developers, which seemed to be more impacted from the financial difficulties, have also strived to  overcome the current downturn.

With the launch of sales for  units in its 50-storey Discovery complex tower in Hanoi’s Cau Giay district recently, Cau Giay Investment Trading Services Joint Stock Company is hoping the real estate market will warm up in the beginning of 2013. Tran Duc Minh, chairman of Kinh Do TCI Group, of  which Cau Giay Investment Trading Services is a member, said that even in a depressed market, the project’s starting price of VND27 million ($1,285) per square metre would be attractive.

Minh emphasized that the Discovery complex is the first ever building in Vietnam which is connected directly to the planned elevated railway of Hanoi. This will make the project’s value increased in the coming time.

Meanwhile, the Ho Guom Garment Company also is going to top out its on-going construction 29th storey building Ho Guom Plaza in Ha Dong district of Hanoi.

Ninh Thi Ty, chairman of the Ho Guom Garment company said that the company was actively coordinated with domestic and international partners to build up value added to the project.