Especially during this time, investors have more opportunities to “hunt” for real estate at a good price. Businesses and investors are also actively stimulating demand with various preferential policies, discounts, or extending payment progress…
For example, in the Westgate complex (Binh Chanh), the shophouse product line at the base of the building is creating a great attraction compared to other real estate types. Buyers only need to have about 3.9 billion VND (equivalent to 30% of the product value) to receive the handover of the shophouse for lease, business, and cash flow generation, while the remaining amount is paid in installments within 24 months.
Shophouse at the base of the Westgate project attracts investors
That means customers do not have to pay a large amount of money at once but can still exploit and use the shophouse and have an additional 24 months to balance and prepare cash flow. Even customers with limited capital can easily “spend money” to buy a shophouse.
Along with the 30% payment, investor An Gia also applies a policy of committing to re-renting shophouses with a total incentive of about 1.5 billion VND (equivalent to 42 million/month) within 36 months. This is considered an immediate profit, creating passive income for investors, and increasing the liquidity of the project.
As a long-term investor, Mr. Nhat Minh (50 years old, District 7) believes that the advantage of the policies is to ensure safety for real estate buyers and, at the same time, help investors achieve multiple profits on their initial capital.
“I only need to pay 3.9 billion in advance, which is 30% for a Westgate shophouse, and I can secure a profit of about 1 billion VND thanks to the lease commitment in the first 2 years. At the beginning of the 3rd year, I will have to pay the remaining amount, which is 65% of the shophouse value. At this time, I can borrow capital from the bank and use the lease commitment amount for the remaining 12 months to pay interest regularly each month. By the 4th year, I can exploit the business to generate cash flow or transfer the real estate for investment purposes if the profit margin meets expectations,” said Mr. Minh.
Westgate complex has a scale of more than 2,000 apartments
According to An Gia’s representative, with projects that have a large number of residents, the rental and resale rate of the shophouse product line is always over 90%, and the average price increases by 10-15%/year. Notably, in central areas with methodical planning and convenient connections, this rate can reach 30% per year.
Located in the administrative center of Binh Chanh, the Westgate complex owns the advantage of 5 facades, including Nguyen Van Linh Boulevard, Tan Tuc Boulevard, opposite the Binh Chanh District People’s Committee, Binh Chanh District Hospital, and a 2-hectare central park. The project has a scale of more than 2,000 apartments, of which the shophouse product line accounts for only a very small number, about 1-2%.
“Thanks to the advantage of 5 bustling facades, Westgate shophouses can directly serve 8,000 – 10,000 residents living in the project and about 4,000 customers, including civil servants and employees working in the Binh Chanh administrative area. At the same time, it has the potential to exploit millions of visitors and neighboring residents because the project is located right at the western gateway of Ho Chi Minh City, only a few minutes from the Ben Luc – Long Thanh Expressway and Ring Road 3,” said An Gia’s representative.
It is worth noting that the project belongs to the core of the Binh Chanh administrative center. This is an area with a complete infrastructure, and the local government is actively adjusting the planning to implement the “core” goal of the project to establish Binh Chanh City in 2025.
This explains why the supply of Westgate shophouses is constantly being “hunted” and currently only a small number remain. Not to mention, the price level is still in the “trough” when compared to products in the segment in the Thu Duc City administrative area – the growth pole of the East, similar to Binh Chanh in the West.
Westgate owns 5 facades in the administrative center of Binh Chanh
“Currently, the price of the commercial business space around the Thu Duc City People’s Committee area ranges from 150-300 million/m2. Meanwhile, the price of commercial space in the Binh Chanh administrative center area is around 120 million/m2. Meanwhile, the selling price of Westgate shophouses opposite the Binh Chanh People’s Committee is only over 60 million/m2,” said a representative of a real estate brokerage firm in Ho Chi Minh City.
Thus, it can be seen that when Binh Chanh officially becomes a city in 2025, the central area with all kinds of services and a dense population will stimulate the real estate market to grow “hotly”. In particular, the shophouse product line, which has the ability to exploit a steady cash flow, a small quantity, and high liquidity, will have the highest added value in the area.
However, the value of shophouses still depends on several variables. The first is that the occupancy rate of the entire project must be fast. The second is that the project’s amenities and services must be good. The third is that the internal resident community is large enough, and the fourth is that there must be a seamless connection to attract the resident community outside the project.
On the other hand, before choosing to entrust their money, shophouse investors should carefully consider the brand and reputation of the investor. This is an important factor because if the business has enough enthusiasm to develop and manage the project well, then the shophouse investment will be guaranteed to generate the expected profit.
Operated since April 2023, the Westgate complex has a high population density and is forming a community of young, modern families in the administrative center of Binh Chanh. The project’s internal area currently focuses on various types of trade – services from shopping, dining to health care…
Readers access www.westgate.vn or contact hotline 0916.770.880 – 0933.384.567 for more details
