A new perspective from one of the pioneering real estate schools in Asia to assess the development direction and value of this model in Vietnam.
In early 2021, Vietnam’s real estate market was buzzing with information that the price of a luxury apartment in Ho Chi Minh City was expected to be 18,000 USD/m2. This price can surprise people in the domestic market, branded real estate in urban areas (Urban Branded Residential Area) is still too new. In fact, in the market of Bangkok – a “neighboring city” with Ho Chi Minh City, a pioneer in the luxury real estate segment, you can see instructors about the model and value of this product line.
Bangkok first style luxury real estate in urban areas in Asia châu
Thailand is the first in Asia in the field of luxury real estate with about 30 projects and construction, Bangkok city alone has 14 projects and is being completed, ranked 5th in the world (according to Savills Research). Bangkok had its first branded real estate project in 2011. Only in 2019, the 3rd most populous city in Southeast Asia had 3 new branded housing projects: Four Seasons Private Residences, Banyan Tree Riverside Residences and Banyan Tree Riverside Residences. Apartments at Mandarin Oriental Bangkok.
According to Aaron Aemi Kuvanun, an analyst at CBRE Thailand, the explosive growth of luxury real estate in Thailand stems from the belief of Thai giants that reputable hotel brands can guarantee quality. project during construction and operation.
Most of the rich and super-rich in Thailand live in Bangkok. Mr. Carlos Martinez – Director of research and consulting department of Knight Frank Thailand, said that the development of this class in this city is the basis for the development of luxury real estate. In just 7 years, from 2011 to 2018, the number of rich people in Bangkok doubled.
In addition, high-class customers from Hong Kong, Singapore, and China also contribute significantly to the number of luxury real estate transactions in the Thai capital. According to Knight Frank’s data, foreigners account for 35%-50% of total buyers of branded homes in Bangkok.
Opportunity for luxury real estate in Vietnam
When brand new real estate came to Thailand, it was hard for anyone to imagine such a strong development of this model in Bangkok as it is today. But amid the growth of the economy and the wealthy, the luxury urban real estate segment has grown rapidly in the country’s capital.
This story is not unique to Thailand. According to Knight Frank data, “there is a direct correlation between prosperity and demand for luxury real estate” and “we are seeing strong market interest in this model from as global prosperity has accelerated since 2000”. The branded real estate model is developing strongly in cities that are the economic centers of Asia such as Dubai, Kuala Lumpur and spreading to new markets such as Ho Chi Minh City.
Recently, Marriott International – the world’s leading corporation in the luxury real estate segment, has chosen Ho Chi Minh City as the place to develop the world’s largest real estate project of this brand. The Grand Marina, Saigon project at a prime location in the center of Ho Chi Minh City has created a great attraction for investors in the region.
Vietnam – “Asia’s rising star”, attracts the second largest number of future luxury real estate projects in Southeast Asia, after Thailand according to research by Savills. Ho Chi Minh City, which contributes a quarter of the country’s GDP, is an ideal location for the development of luxury apartments and is expected to be the next place for the booming branded apartments.
The first positive signals
The market follows the attraction of the Grand Marina project in the Vietnamese market because the expected selling price is at a record high, comparable to leading luxury projects in Bangkok, Singapore and a brand new urban real estate model. . In May 2021, Grand Marina attracted great attention from investors at its first domestic launch.
This is explained for several reasons. This is the pioneer project to bring the branded real estate model into the city center in Vietnam. Ho Chi Minh City is home to a large number of successful and wealthy people, so it is one of the markets that have the most demand for branded real estate. In addition, Grand Marina, Saigon is also associated with the Marriott International brand, so customers will receive international standard utility services of a leading resort group, in addition to quality assurance in design. , construction of the project.
The positive feedback of the market is an optimistic signal about Vietnam’s economic development, and the growth of Vietnamese real estate compared to the region. From the stories of the previous markets, this is the basis for creating confidence in the Vietnamese market and increasing the attraction of the branded real estate model in urban areas in the future: https://masterisesaigon.com/