In the past few years, branded real estate has been introduced as a pioneering product line, shaping the distinct lifestyle of the elite in Vietnam.
In fact, the Asian market is considered to have high potential for luxury real estate development. Despite the impact of the pandemic, the demand for luxury goods in Asia is still increasing strongly, reflected in the revenue in the first 6 months of 2021 of LVMH (the group that owns the brands Louis Vuitton, Dior, Tiffany & Co. …) in this area grew to 34%.
The development potential of luxury real estate in Vietnam is considered to be quite large, with the super-rich class being and will increase sharply in the future. According to a Nielsen survey in 2013, 56% of Vietnamese respondents said they are willing to spend money to buy branded goods. This rate is third highest in the world, just behind China & India. In the development flow of super luxury real estate, luxury real estate has gradually asserted its class and is growing.
The development potential of luxury real estate in Vietnam is considered to be quite large
In the world, besides luxury real estate managed by hotel brands, the race for luxury real estate now has the presence of many big luxury brands, which together aim to bring the unique experience, different and worthy of the lifestyle of the upper class. Lifestyle brand real estate is a type of real estate that is designed, built and managed to the standards of a luxury brand, which is not part of the hotel management sector. The brands participating in this field are quite diverse, belonging to the list of prestigious brands in the world, such as super luxury brands in fashion, jewelry, watches, cosmetics, supercars: Versace, Bvlgari, Elie Saab, Missoni, Armani, Lamborghini, Porsche, Aston Martin, Fendi,...
In August 2022, CBRE released its Lifestyle Branded Real Estate Spotlight Report, assessing and commenting on the prospects of this unique property. According to Ms. Duong Thuy Dung, CEO of CBRE Vietnam: "Lifestyle luxury real estate is not only seen as an asset but also a measure of the owner's class."
According to CBRE's report, about 20 years ago, the first luxury real estate projects were developed associated with hotel management brands and were motivated by the existing tourism market. But the landscape is slowly changing. The business class, merchants, and billionaires thrive in both quantity and quality, leading to increasing consumer demand and ownership of luxury items. Seizing the opportunity, many luxury brands have joined the competition, leading to the birth of lifestyle brand real estate. Worldwide, the supply of lifestyle luxury properties accounts for about 15-20% of the total supply of luxury properties.
According to Wealth-X, the growth rate of the number of rich people (net assets from 1-30 million USD) in Vietnam is about 10.1% in the period 2018-2023,
Among the top 5 fastest growing countries in the world. The strong rise of the upper class has been driving demand for enhancement, lifestyle affirmation as well as the ownership and spending of luxury products. This is the driving force for the strong development of luxury real estate in Vietnam. The Vietnamese market in 2021 has welcomed the first luxury real estate projects in the ultra-luxury segment (prices over 12,000 USD/m2). Project Grand Marina Saigon Apartment and The Grand Hanoi have an average price of 14,700 and 25,000 USD/m2, respectively, reaching the selling rate from 70% of the units opened for sale.
The lifestyle brand property is designed, built and managed to the standards of a luxury brand. The appeal of lifestyle brand real estate comes from its uniqueness, connectivity with luxury brands and sustainable value. This type perfectly meets the needs of the elite - those who need to affirm their class and own brands, especially interested in style and living experience.
The world is slowly reopening,
Opening up opportunities for foreign investors to return to Vietnam as well as Vietnamese tourists to travel and experience a high-class lifestyle at world-class real estate projects. This is an opportunity to affirm the quality of the branded real estate model, although it is still quite new in Vietnam.
Vietnam has appeared information about the first lifestyle brand real estate project - The Rivus, associated with the Elie Saab brand. CBRE forecasts that the trend of this type of real estate will develop strongly, especially in Vietnam, driven by the growth rate of the super-rich and the development of the luxury goods market.