Oakwood Residence Saigon to open this month in District 7's Saigon South Place.
by Hong Nhung
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Oakwood Worldwide, wholly owned by Mapletree Investments, recently announced the upcoming opening of their second property in Ho Chi Minh City’s District 7. Set to be operational this month, Oakwood Residence Saigon, the first Oakwood serviced apartment developed by Mapletree in the country, is part of Saigon South Place.
“Mapletree is proud to launch our first Oakwood-branded property in Vietnam and the second in Asia-Pacific we built, after acquiring Oakwood Worldwide,” said Mr. Chua Tiow Chye, Deputy Group CEO of Mapletree Investments. “This move is part of our wider business strategy to bring the reputable Oakwood brand to global markets.”
“We intend to step up the development and acquisition of serviced apartment assets in markets globally that have growth potential for serviced residency and corporate housing, and they will be managed under the Oakwood brand.”
Saigon South Place is a 4.4-ha integrated mixed-use project master-planned and developed by Mapletree. The development comprises SC VivoCity, a 64,250 sq m shopping mall, the Mapletree Business Centre, a 17-story Grade A office tower, Oakwood Residence Saigon, and the RichLane Residences high-rise residential block. There are also plans for two more commercial towers in the precinct.
“Vietnam has been experiencing robust economic growth and with international arrivals and domestic travel expected to continue on a growth trajectory, it is an opportune time for us to grow our presence in the country,” said Mr. Dean Schreiber, Managing Director of Oakwood Worldwide in Asia Pacific.
The gateway to the Mekong Delta provinces, Ho Chi Minh City has the highest tourist numbers in the country, and international arrivals in Vietnam as a whole are expected to reach 20 million by 2020. Domestic travel has also seen a 15 per cent increase with expected continued growth.
The first Oakwood project in Ho Chi Minh City’s District 3, developed by SonKim Land, was opened at the end of 2016.
According to Savills Vietnam, total stock of serviced apartments in Ho Chi Minh City as at the fourth quarter of last year was more than 4,800 units, up 7 per cent year-on-year. There was a slight occupancy increase on average and rents remained stable.
The more than 800 new units planned to launch this year are expected to affect segment performance. The CBD accounts for 70 per cent of new supply, Savills noted.
- serviced apartment
- real estate
- District 7
- SC VivoCity