Scenario Analysis for a Mixed-use Project – Ho Chi Minh City, Vietnam
The client owned a site in a prime location in District 1, Ho Chi Minh City and was considering between hotel, serviced apartment and office components. At the same time, the client required a suitable development option that was able to meet the target budget and achieve stable annual profits while demonstrating prudent real estate planning.
Alternaty conducted in depth analysis on three scenarios after completing a market study of the HCMC hotel, serviced apartment and office sectors. The scenarios addressed the high land cost and sought to uncover the highest and best use within the stated criteria of the developer (target return, development budget, pay back period and stable annual profit). The client decided to develop a grade B office building which generated a stable annual revenue and profit.