The property consultant firm Knight Frank Vietnam said it has just signed a cooperation contract with Inveskia Co., a joint venture between Prudential Vietnam Fund Management, Kien A and Invesco companies. Under this contract, Inveskia is assigned to be a marketing and offering agency for the commercial area of the Imperia An Phu building in District 2.
Stephen Wyatt, director of retail service division at Knight Frank, said the Imperia An Phu project would offer to investors as much as 4,200 square meters of retail space, including a supermarket, wedding hall, restaurant, beauty salon, daycare center, private school, healthcare center and gymnasium.
The project is developed on a two hectare site, consisting of four blocks of 24-28 storey buildings with some 700 apartments and a retail section. The total investment for this project is US$130 million.
Also at Cat Lai T-junction area, The Vista project of the Singaporean property developer CapitaLand is under progress for completion after offering its products to the market in 2007. The project includes two blocks of buildings with about 850 commercial and serviced apartments, as well as retail and office spaces.
According to an unofficial source, CapitaLand has transferred the office building, serviced apartment and commercial center segments with total area of 5,700 square meters for its partner.
Earlier, VinaCapital Real Estate Company chose the property service provider Cushman & Wakefield as a broker to offer each floor or the entire Metroplex office building project in Phu My Hung urban area in District 7.
Some experts said the offer of partial office and retail spaces provided investors with opportunities to purchase and possess commercial real estate instead of renting. The acquisition of partial office building is popular in many countries but still unfamiliar to the Vietnamese market.
However, from another angle, experts saw a shortage of capital in the property market leading investors to seek new financial sources. Along with selling a complete project, offering a partial project is a new approach to capital mobilization for their other project constructions.
Regarding the office and retail area businesses, market observers said the average price of the HCMC-based offices for lease has continued to fall for ten consecutive quarters. In particular, rental price dwindled to some US$36 per square meter in grade-A offices and US$22.5 in grade-B ones.
The current market difficulties force property project owners to launch preferential policies so as to attract new tenants as well as enforce their bonds with old customers.
Meanwhile, the retail market saw no new supply for lease in the city’s central area in the past two quarters adding to the available 353,000 square meters.
According to CB Richard Ellis (CBRE), the average rental price of commercial centers is US$109 a square meter, rising by 6% against the beginning of the year. The price is US$33 per square meter for projects outside the downtown area.
Owners of these projects, due to location disadvantage, are offering competitive prices to attract more tenants.
By Dinh Dung - The Saigon Times Daily
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