With term-owned real estate, the ability to exploit cash flow and asset value during use is a factor to consider in addition to location, legality and market demand.
The mentality of prioritizing long-term real estate ownership is quite common in Vietnam, when real estate is often considered an asset to accumulate and pass on to the next generation. However, with time-limited products, investors can approach a different problem: how much value does the asset create during the period of use.
This model is not new in many markets around the world. Singapore popularizes the 99-year leasehold form (long-term land/house lease rights) for many housing projects. Meanwhile, most land in Hong Kong (China) is also leased or granted in the form of leasehold. New land leases are currently granted for a common term of 50 years, while some renewal mechanisms are also specified in the special zone's land policy.
Buyers therefore evaluate properties based on factors such as location, project quality, housing needs and ability to increase prices. A property in a prime location with high demand can still maintain its value and generate sustainable profits even though it has a term of ownership.
In Vietnam, the Land Law 2024 stipulates that the land allocation and land lease term for normal investment projects is no more than 50 years; In some special cases it may be longer but not exceeding 70 years. When the term expires, the right to use can be considered and extended by the State according to the law.
Therefore, with long-term ownership real estate, customers can prioritize buying to accumulate assets. With term real estate, capital efficiency and cash flow generation ability should be placed in parallel with the ownership period, depending on factors such as location, market demand and operating ability. If it is an asset that is difficult to exploit or lacks practical demand, long-term ownership of an apartment does not automatically ensure profitability.
In Da Nang, the demand for apartment exploitation can be seen in the context of the city continuing to develop tourism, services and new economic activities.
The establishment of the International Financial Center and Free Trade Zone (FTZ) is expected to attract more experts, international personnel and new business activities, thereby creating more demand for accommodation space in the central area. Besides, tourists can also become part of the demand for projects with convenient locations and diverse amenities.
In that context, projects along the Han River benefit. According to Mr. Tran Van Binh, Vice President and General Secretary of the Vietnam Real Estate Brokers Association, this area has advantages in landscape, connectivity and commercial exploitation capabilities, while the supply of riverside projects is increasingly limited.
The Symphony 5 commercial service apartment tower of the Sun Symphony Residence complex is one of the projects in the Han River area developed in this direction. The tower is located on the axis Tran Hung Dao - Le Van Duyet, along the river, with an area of 11,371 m2. The building is 31 floors high, has two basements and more than 1,200 apartments, including studios, one multi-purpose bedroom, two bedrooms and penthouses. The investor said that the term of Symphony 5 is 50 years from April 23, 2026.
The location along the Han River is one of the factors to pay attention to when evaluating exploitation capabilities. From the project, the distance to Man Thai beach is about 3 km, Da Nang Downtown is about 5 km and Da Nang international airport is about 7 km.
Symphony 5 Tower benefits from the established amenities and lifestyle of the Sun Symphony Residence complex. Buildings S1, S2 and S3 started handing over from May; The first apartments were issued red books in June after two years of launch.
The product structure is also oriented to mining needs. Nearly 90% of Symphony 5 apartments are studios and multi-purpose bedrooms, a product group aimed at short- and long-term stay needs.
According to Sun Group, with a term-owned apartment, the investment problem lies not only in the number of 50 years but also in how the asset is exploited during that period. Location, rental demand, product structure, operational quality, legality, input prices and operating costs are factors that need to be considered simultaneously to evaluate actual effectiveness.
