Previously, the price of townhouses in Ho Chi Minh City was about three times higher than the price of luxury apartments. Currently, the rate has dropped to about 1.5 times in newly developed areas.
Specially, in many isolated projects with classy living space in satellite urban areas, the selling price of townhouses is equivalent to an apartment in central area.
With the advantages of price, ownership of land, using area, potential for sustainable revenue, etc., townhouses are overwhelmed segment in the fierce competition with apartment segment by its undeniable advantages.
Small area, suitable with payment capacity
Jones Lang LaSalle (JLL) forecasts that in the second half of 2017, the supply of apartments will be between 25,000 and 27,000 units. Meanwhile, the supply of townhouse villas is expected to hit a record high of only about 4,000 units.
Compared to similar populated areas like Kuala Lumpur, Bangkok, and Jakarta, HCMC’s primary housing supply is rated as relatively low (less than 10%), creating growth opportunities for this segment in the future. Customers buying townhouses are mainly the final buyers for long-term use such as living or renting.
However, for investors, investing in townhouses is also a sustainable profitable channel that many people aim to because assets are attached to the value of land, while apartments are rapidly degraded and there is no foundation to maintain the value.
Adding to that is the Vietnamese psychology, which is very fond of “home attached to land” to accumulate and facilitate trading. Therefore, townhouses are the dominant choice in the real estate market.
To be named as “house attached to land”, the area of previous townhouse villa was quite large that made less middle-class families afford to buy. However, currently, owners have launched villas with an area of less than 200 square meters and townhouses with popular area of 75 square meters.
Small size townhouses are preferred and have more advantages than apartments because they are not much more expensive but can provide better accompanying utilities such as recreational areas, swimming pools, green park, school, convenient shopping and security.
An example for the success of the townhouse of 75m2 is Park Riverside Premium project developed by MIK Group in District 9. With multi-colored architecture design, the project is considered as a version of the “Venice city” which has attracted a lot of customers interested in at the time of its entering into the market.
To be constructed in a contemporary European style with one ground and two floors, the buyers of townhouse at Park Riverside Premium will be able to possess a romantic living space, full of artistry, enjoy the complete local utilities chain with “international resort standard” and price affordable for many families – from 3.4 billion.
Open space, the price per square meter cheaper than the apartment
An indispensable consequence of population growth and urbanization is the shrink of land fund. It is followed by the race to develop modern high-rise projects, the rise of high-end apartment buildings and becoming increasingly expensive.
A lot of high-end projects have been rapidly outdated, decreased price, downgraded. The maintenance and management cost deficits to the profitability rate of this property type.
Contradictorily, the townhouses segment continues to grow steadily and is not much affected by the fluctuation of the market. In addition to the commercialization ability, premises business, the owner of the townhouse is also increased the investment profit according to the permanent increase of land price.
With the 75m2-townhouse type, the buyer has using area of about 150m2 and front courtyard – green back garden, garage meeting the ideal life of “1 wife, 2 children, 3 floors, 4 wheels”.
Meanwhile, with the investment of nearly 4 billion, buyers can only choose a central apartment with 2-3 bedrooms of about 100m2 and completely short of other utility on open space as townhouses.
To be the most prominent project in the East, Park Riverside Premium has consumed nearly 90% of its products since its launch. During the special sales event on the morning of September 17, customers attending the project will experience the ideal living space for the family of 75 square meter townhouse.
Official distributors including Era Vietnam, LinkHouse and Unihomes said that at the event, there will have draw program with lots of attractive gifts. Particularly, for customers deposit successfully will be rewarded with many gifts worth 125 million.
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