Recent data from Savills shows that Vietnam is in the group of 10 markets with good growth rates in the world's luxury real estate sector.
Branded real estate in Vietnam is among the fastest growing in the world
Despite the impact of the Covid-19 pandemic on the real estate industry in 2020, the branded residences model continued to record growth compared to other fields. After a decade of growth at 170%, 2020 continues to record record growth in this sector. Recent data from Savills shows that Vietnam is in the group of 10 markets with good growth rates in the world's luxury real estate sector.
Savills data shows that the top 3 global markets for luxury real estate are Miami, Dubai and New York. Other fast-growing markets in this area include Vietnam, the United Kingdom, Morocco, Malaysia, Australia, the Kingdom of Saudi Arabia and Egypt. In essence, Branded Residences is a product that combines a real estate developer with a well-branded unit in terms of design and management services.
Notably, the Asia-Pacific market is expected to become a hot spot for this type of real estate development, with a large number of Branded Residences projects, which have the advantage of low entry costs and There is little risk for luxury brands when solving the problem of meeting domestic demand.
Thailand and Vietnam are emerging as developed resort tourism destinations and are assessed to meet many of the needs of the international market. Moreover, these two countries continue to record the growth of the rich group in the country, the demand for the Branded Residences model therefore expands.
Mr. Matthew Powell, Director of Savills Hanoi said: “Branded Residences is in the most high-end segment of the market, be it large-scale or small-scale projects, in the form of apartments or villas. The psychology of buying a house in the Vietnamese market is similar to many other markets in the world: investors look for products with good construction quality, professionally managed and operated, and good commercialization ability. products can bring attractive economic benefits to the owner.
So, whether the product type is a hotel, residential real estate for rent or to live in, they are always looking for a high-quality Branded Residences project. The Vietnamese market is looking for such luxury housing brands. Big brands give buyers a certain peace of mind about design and quality of management, so in the coming time these big brands will be known more, the market will have positive reactions. for this type of product.”
“Usually, when it comes to this definition, people tend to think of resort real estate more, but more than 60% of the world's luxury real estate is concentrated in modern cities. In the city. In Ho Chi Minh City, JW Marriott can be mentioned. Hanoi is also planning to develop this type of housing product in the near future. Therefore, I think that Branded Residences real estate will be a trend that will appear more than the next few years, bringing to the market the type of housing from famous brands with high design standards. We have high expectations for the development of this quality real estate segment,” emphasized Mr. Matthew Powell.
Regarding the price of Branded Residences real estate, there is always a huge difference between price and value. Director of Savills Hanoi said that many people cannot afford Branded Residences real estate products, because these products often have high-end design, higher service quality, and provide a complete experience. distinctive. This is also what leads to the difference, especially in the price of the product. The price of this type of real estate in Hanoi is said to be quite high, but still lower than similar products of other brands in the world, or even brands in Ho Chi Minh City. Bright.
“I think that branded real estate products are quite expensive, but the value that this type of property brings is also commensurate. So “premium or luxury” is also a challenge, asking real estate developers to bring the most premium value to buyers. This is similar to when you buy a designer handbag or stay at a luxury hotel. The cost of a 5-star resort managed by international operators will be more expensive than at a 4- or 5-star hotel with no name, the quality of experience will therefore vary. That's the difference between price and value," Powell said.
Savills' housing market survey shows that, under the impact of the Covid-19 pandemic, one-third of the global market recorded a growing demand from customers who want to buy real estate with a larger area than real estate. properties they are living in, with flexible requirements between private and shared space.
Flexible space is a big concern of this group of customers, which can be understood as adding a bedroom, adding a home office or adding space for sports activities and healthy living. The garden space, spacious balcony, the appearance of a private elevator, the air filtration system are also other points of great interest. Branded Residences also encourages occupants to use software applications in scheduling utilities, minimizing physical interaction between people.