JLL to be sole marketing agent of luxury D1MENSION residential tower in HCMC.
CapitaLand has appointed JLL Singapore as its sole marketing agent for D1MENSION, a luxury residential tower in Ho Chi Minh City.
This follows its announcement on September 23 that it had acquired a prime site in the city’s District 1, comprising a 17-storey residential tower and a 22-storey serviced residential tower, for $51.9 million, with an estimated project value of $106 million when completed in the first quarter of 2018.
“We are very pleased that JLL Singapore’s first residential agency appointment in Vietnam is with CapitaLand, with whom we have had a long and successful partnership in Singapore and Asia,” said Mr. Chris Fossick, Managing Director for JLL Singapore and Southeast Asia.
He added that the outlook for Vietnam and its real estate market is very positive, supported by strong fundamentals such as having one of the world’s fastest growing economies, with growth of 6 to 6.5 per cent expected over the next three to five years, significant urban population growth over the next decade, and a rapidly growing middle-class, which is expected to increase by over 130 per cent in the next five years.
Located in District 1, D1MENSION is close to shopping malls, cinemas, schools, office buildings, restaurants and medical facilities. Connected to downtown Ho Chi Minh City via the Vo Van Kiet Expressway, the development is within a five-minute drive from the CBD and enjoys connectivity to District 7, an established expatriate enclave with first-rate shopping malls and international schools.
The residential tower comprises 102 apartments units for sale across a variety of two-, three- and four-bedroom apartments and penthouse units, with state-of-the-art “sky facilities” such as a swimming pool, a gym and a clubhouse with panoramic views of the surroundings.
The project is expected to be launched on October 22 in Singapore. Prices range from $350,000 to $500,000 per unit.
Mr. Chen Lian Pang, CEO of CapitaLand Vietnam, said: “We are excited to unveil D1MENSION, CapitaLand’s first luxury boutique development in the vibrant and cosmopolitan District 1 in Ho Chi Minh City. D1MENSION will be the first residential development in Vietnam to offer property management and concierge services by Ascott, the world’s largest international serviced residence owner-operator.”
He added that investors can be assured of sustainable value in the mid to long term and believes that D1MENSION will appeal to buyers seeking exclusive and luxurious homes at a coveted address in the heart of Ho Chi Minh City. “With our previously launched projects in Ho Chi Minh City averaging about 90 per cent sales, we are confident that the limited 102 units at D1MENSION will be equally sought after,” he said.
Average incomes in Vietnam have increased by about 10 per cent per annum in the last five years while home prices have been stagnant. As a result, the home price to income ratio has fallen from 7.6 years in 2010 to 3.9 years currently.
The entry-level apartment price to income ratio of 3.9 years is 30 per cent lower than the average of 5.7 years among other Southeast Asian cities.
According to JLL Research, overall apartment prices in Ho Chi Minh City are expected to rise by 5 to 10 per cent per annum in the next three years, supported by strong absorption and affordability levels.
“Ho Chi Minh City apartment prices are among the most affordable in the region when compared against local income levels, making the entry point attractive,” Mr. Fossick added.