The establishment story of the biggest Serviced Apartment under $1000 in district 7, Saigon, Vietnam.

July 16, 2018

The establishment story of the biggest Serviced Apartment under $1000 in district 7, Saigon, Vietnam.

The serviced apartment market in Ho Chi Minh city has become effervescent since 2015. Starting from the central district 1 then expanded to district 3, Binh Thanh district next to district 1, Phu Nhuan district, etc.

Until early of 2017, the segment under $1000 of district 7 is actually prosper. It begins later than the central area a little bit is an easy to understand thing for the market due to its particular location. District 7 is first well-known for its methodical style and the famous Phu My Hung residence or Nam Long area nearby.

Serviced apartment market itself is apparently difficult to step in the field which intrinsically has almost the highest condominium density of the city. Before the real market of this niche is shaped, the guesthouse buildings with the scale from 50-70-100-150-200 rooms and the area around 12-15-18-20-22 sqm is an optimal selection and quite safe for investors as well as those who seek for a place to stay.

Simply, that model brings the result for shortage of accommodation which is decent, affordable, including security and management staff. That’s it, the market only needs a few things. And innumerable guesthouse combinations (sometimes they call it “luxury”) appear. A combination like that can earn approximately 2 billion monthly for forecast revenue.

The story about a 4,000 sqm land, total floor area nearly reaches 12,000 sqm, trying to be a 400 guesthouse building with forecast revenue about 2 billion per month.

There are some values to be noticed about a focused cooperation that produce the following related values: monthly total revenue | total in-house guest relating to total motorbike current slots | residence’s social behavior tradition | surplus value of the building after running in next activities such as bank valuation or transfer | sustainable value overtime of the building | investor’s social position | etc.

Also with the problem set for the land, the number of rooms reduced to 250 rooms, the number of equipment provided reduced to 150 equipment. And use that gap to invest in public quality, utility and facility. Revenue of the building with new project has been raised from 2 billion to 3.2 billion per month.

Out of the business getting up to 160%, the building value enhanced, the persistence improved, the building has better valuation. Generally social tradition of the building is higher 1 level compares to guesthouse combination.

Moreover, that position has formed a new concept, new model, a redefinition: with slightly higher expenses compares to a guesthouse, now customers completely have another ideal selection with all of the facility like gym, pool, restaurant, convenience store, etc. and get served with daily housekeeping, apartments are always in a clean and clear status.

  CityHouse Apartment | Sonata Residence has changed the point of view of both investor and customer in this area. Furthermore, we create a new concept about serviced apartment model suitable with particular locations and logical surplus value.

Customers have a new option with the feeling they get more than the money they have to pay.

CityHouse Apartment | 41 Nguyen Thi Thap St, District 7, Tp Hồ Chí Minh, Việt Nam.

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