lovesaigon
May 22nd, 2005, 07:16 PM
What does construction of the 68-storey building by Bitexco mean to the real estate market of Ho Chi Minh City?
The project of 68-storey financial center is a landmark of development of this market regarding both size and quality. The current highest building in the city is of only 33 stories. There are going to be two high buildings of more than 40 stories which are Starship and Larkhall – Savico. Both of them are A grade complex of apartment – office – trade center.
Do you think this is the signal that the real estate market of Ho Chi Minh City has developed at the level of those of Bangkok or Kuala Lumpur?
If we make comparison, the real estate markets of Bangkok and Kuala Lumpur are much bigger and more developed than that of Ho Chi Minh City. Grade A offices in Bangkok total 1.37 million m2 and in the forth quarter of last year only, 115,000 m2 of new offices was occupied. Construction of the twin-towers in Kuala Lumpur was completed in 1998 and the towers were full two years later at very comparative prices. Meanwhile, the total area of grade A offices in Ho Chi Minh City is just 80,000 m2.
But the larger number of building projects means that real estate businessmen and bankers are confident in this market in Vietnam? Do you think that there will be more tall buildings in Ho Chi Minh City?
-I believe that the new generation of building in the city will be much larger and higher if allowed by the city administration. Land prices at the city center are so high that investors have to build higher and higher buildings. That means there needs to be more investment, more car parking fields, and more elevators.
Which sector do you think will have the highest demand for office?
-Demand for office will come mostly from multinationals and Vietnamese companies which want to have more convenient working place. I think this new development will encourage domestic companies to improve their working conditions and they will need to lease offices at buildings of higher standards.
Do you place much hope in changes taking place in the real estate market of Ho Chi Minh City?
-Almost no new building has been established in the city for the last two months. But this will change in the next 12 months. One of the special landmarks of this city is there is almost no unoccupied shop.
The project of 68-storey financial center is a landmark of development of this market regarding both size and quality. The current highest building in the city is of only 33 stories. There are going to be two high buildings of more than 40 stories which are Starship and Larkhall – Savico. Both of them are A grade complex of apartment – office – trade center.
Do you think this is the signal that the real estate market of Ho Chi Minh City has developed at the level of those of Bangkok or Kuala Lumpur?
If we make comparison, the real estate markets of Bangkok and Kuala Lumpur are much bigger and more developed than that of Ho Chi Minh City. Grade A offices in Bangkok total 1.37 million m2 and in the forth quarter of last year only, 115,000 m2 of new offices was occupied. Construction of the twin-towers in Kuala Lumpur was completed in 1998 and the towers were full two years later at very comparative prices. Meanwhile, the total area of grade A offices in Ho Chi Minh City is just 80,000 m2.
But the larger number of building projects means that real estate businessmen and bankers are confident in this market in Vietnam? Do you think that there will be more tall buildings in Ho Chi Minh City?
-I believe that the new generation of building in the city will be much larger and higher if allowed by the city administration. Land prices at the city center are so high that investors have to build higher and higher buildings. That means there needs to be more investment, more car parking fields, and more elevators.
Which sector do you think will have the highest demand for office?
-Demand for office will come mostly from multinationals and Vietnamese companies which want to have more convenient working place. I think this new development will encourage domestic companies to improve their working conditions and they will need to lease offices at buildings of higher standards.
Do you place much hope in changes taking place in the real estate market of Ho Chi Minh City?
-Almost no new building has been established in the city for the last two months. But this will change in the next 12 months. One of the special landmarks of this city is there is almost no unoccupied shop.