Masteri Thao Dien - A great project for investment

Masteri Thao Dien Condominium (HCM, Vietnam)

Summary

·         Very good location: next to Metro station and Vincom Shopping mall in Thao Dien Area

·         Attractive price: 10%-20% discount compared to the nearby projects, high potential for capital appreciation

·         Good rental yield at around 8-10% (Gross)

·         Reputable contractor and developer with good connection to VinGroup, the biggest developer in Vietnam

Very Good Location

Masteri Thao Dien a high end condominium located along the Hanoi Highway in District 2, Masteri Thao Dien. The condominium a few step away from the Vincom Megamall Thao Dien, which was open to public at the end of year 2015 and has been very successful in attracting business and people.

The station number 7 An Phu of the Metro Line No. 1 just at the door step is also another key beneficial feature of the project. With this metro station, it will take just around 10 minutes to get to the business center at District 1. It will reduce significantly the hassle to move in and out of the business district during rush hours with massive traffic in Ho Chi Minh City.


Materi Thao Dien is also located at the gateway of Thao Dien area, which has been home to many foreigners who live and work in Ho Chi Minh (HCM) city as well as tourists who want to find safe and comfortable resting place when come to visit. The area is one of a few locations in HCM where there is a high concentration of foreigners due to its good security and various facilities catering to foreigners like international schools, hospitals, supermarket, restaurants, bar and pubs, etc. Thao Dien is also the symbol of the luxury life style in HCM with a number of lavish villas and condominiums where the riches stay.

 

Masteri Thao Dien location (Source: www.masteri.com.vn)

Attractive Price

Comparison with similar type of projects in the same area or nearby

Project	Developer	TOP	Type of flat	Price per square ft.	Location
The Ascent	Tien Phat	2017	2BR – 3 BRs	SGD $236	Thao Dien
The Vista	Capitaland	2011	2BRs – 4 BRs	SGD $272	Thao Dien
Estella Heights	Keppel Land	2016	1BR - 4BRs	SGD $257	An Phu
Masteri Thao Dien	Thao Dien Investment	2016	1BR - 3BRs	SGD $213	Thao Dien

With the significant discount (10%-20%) compared to the nearby projects, Masteri Thao Dien stands high chance for capital appreciation. This will be even more compelling when the metro line completes in 2018 and fully operates for public use in 2020. It is projected that when the metro line completes, with the convenience it provides, the price in this area would be close to area near district 1, which is around SGD $350 per square ft.. That means more than 60% appreciation within 2-3 year time

Good Rental Yield

With such strategic location, it is advisable for buyer to keep the property for long term growth while collecting monthly rental, which is most likely coming from foreign tenants. Survey the surrounding area shows the rental for 1 room condominium unit at this location is around USD $600 –$800 or SGD $800 - $1070 per month or SGD $9600 - $12400 per year. With the cost of the property around SGD $120K (tax included), the gross rental yield is around 8%-10%. After deducting 20% tax and around SGD $600 per year management fee, the investor is still getting around 6-8%. For larger flat, the rental may be slightly lower per sq ft, however the cost per sq ft. can also be lower.

Also note that, the rental for foreign tenant usually tags with USD so that the owner will be able to hedge the inflation in Vietnam, which can be quite high.

Good Contractor and Developer

Cotechcon, the main contractor for the project, is one of a few most reputable contractors in Vietnam. It was the contractor for a number of iconic projects including Vinhomes Times City Park Hill and Vinhomes Central Park, which are developed by the biggest developer in Vietnam, VinGroup. Cotechcon also had track record of early completion of projects. Masteri is another development to be completed earlier than schedule. This takes care of the risk of delayed and incomplete project, which is not a rare phenomenon in Vietnam.

Thao Dien Investment, the developer of the project, has a good connection with Vin Group. This is why the Vincom Megamall was built to be part of the project, that creating much more value to its residential block. The development was also backed by Techcombank, a major bank in Vietnam. This reduced the financial risk of the project, therefore bring it to a successful completion.

Conclusions:

As a beautiful project located at one of the most luxurious location in Ho Chi Minh City, Masteri Thao Dien has all it needs for a convenient and pamper life style, be it living environment, shopping hobby, international education and hassle free transportation. It was probably the best investment idea at the moment for Ho Chi Minh, a growing city with much demand in term of high standard accommodation.