Work starts on property project in Tan Binh District

The Cong Hoa Garden project worth around VND1.5 trillion covers around three hectares on Cong Hoa Street in Tan Binh District.

Consisting of five 13- to 15-floor blocks, the project has a total floor space of around 130,000 square meters, with 970 apartments and nearly 15,000 square meters of office space plus a retail section of 12,000 square meters.

The first phase of the project set for completion after two years of construction includes 216 serviced apartments having 50-89 square meters each and three floors of commercial center.

Tran Cao Thanh, deputy general director of Kinh Do Land, said that the firm would start selling apartments of the project in the fourth quarter with a price of VND17-18 million per square meter.

In related news, several condo developers are switching part of their commercial apartments into serviced condo for lease now that sales have almost stalled.

Several commercial apartment projects such as the XI Riverview Palace, the Vista in District 2 and Ben Thanh Luxury Apartments in District 1 are being switched into serviced ones.

According to CB Richard Ellis Vietnam (CBRE), this segment is having nearly 800 Grade-A apartments, around 2,500 Grade-B apartments and 1,000 Grade-C apartments with an average monthly rent of US$36.5, US$26 and US$17.5 per square meter respectively.

Tenants have now tended to choose smaller apartments with fewer bedrooms to save costs and shift from the city’s downtown to districts 2, 7 and Binh Thanh District.

The future supply will focus on small boutique projects in the city’s downtown, and the market will continue to face tough competition in the villa and apartment-for-rent segments, according to CBRE. These will help stabilize and lower the leasing price of many projects.