Ho Chi Minh

Spent a few days in Ho Chi Minh last week scoping out the city. The shots were taken from my hotel overlooking the Saigon River. The frenetic pace of development day and night is amazing. The bottom left corner shows the construction of the new MRT underground line. Sitting right on top of it will be the massive Vinhomes Golden River Project on a 25.29 hectares land area comprising Apartment Blocks, villas, office and hotel. This is in prime District One.

I took a look at the showroom, prices are roughly at US$4,000 psm for an apartment. Villas are more ex, roughly US$15,000 to US$18,000 psm based on land area. (This is what I surmised, I had communications problems with the local sales staff, first in English then in Chinese.) Further out from District One, at another project by Vinhomes, prices drop by half.

Ho Chi Minh has recovered from the property downturn a few years ago, helped by changes in laws on ownership and mortgages. However some say it has overshot.

At US$4,000 psm it is definitely not cheap, foreigners only get a 50 year lease supposedly renewable. Locals automatically get freehold. So if you sell to locals it converts to freehold.

But I bet the locals buying from you will then press for a bargain. They know the laws better than you....

Soon Kie