Under the impact of the COVID-19 epidemic, projects with airy living space, comfort, convenience and health factors have received more attention, especially in the high-end and luxury segments.
Ms. Duong Thuy Dung – Senior Director of CBRE Vietnam
By the end of 2021, the housing market in Vietnam will receive the first two luxury real estate projects, one located in the center of Hanoi capital with an asking price from about $35,000/m2 and another project. The project is located in the center of Ho Chi Minh City with the asking price from about 16,000 USD/m2.
IMMEDIATELY FOR SALE
These are recorded as the two projects with the highest selling prices in Vietnam up to the present time. Both of these projects have received a lot of attention from domestic and international buyers with sales events in Hong Kong and Ho Chi Minh City. Even, all apartments of the project in Hanoi capital have been announced as successfully booked in the first and only opening sale in Vietnam.
Around the world, the urban luxury real estate market was developed nearly a century ago with the first project being The Sherry-Netherland in New York City in the US in 1920. After 100 years of development, Branded real estate in urban areas presents a unique, rare, and hard-to-find feature in “Global Cities” around the world with only nearly 350 projects as of 2021.
If including real estate projects outside urban areas in resorts, the number is up to more than 500 projects. Thus, the luxury real estate market in urban areas accounts for about 62% of the total number of luxury real estate, the rest is 38% of the total number of projects coming from coastal, mountain and regional resorts. suburban.
Looking at the market in the region, urban luxury real estate is already present in Singapore with the St. Regis Residences in 2006 and in Bangkok is the St. Regis and Sukhothai Residences in 2007. Branded projects in urban areas in regional countries are located in administrative centers, office financial centers and riverside areas. These are all beautiful locations with limited land.
In Vietnam, the luxury real estate market is still very small. In addition to the two newly launched projects in Ho Chi Minh City and Hanoi mentioned above, it is expected that the Vietnamese market will receive one more branded project in the CBD in 2022 and a few projects. in the period 2023-2025.
Branded apartment projects being and about to be offered for sale in Vietnam have a unique location right in the city center and open views. These projects offer owners products of outstanding quality and design, managed by the world’s oldest and leading 5-star hotel management brand.
These are the factors that are taken care of by the investor to meet the needs of daily relaxation after a stressful working time and ensure the health of the residents.
This need is receiving more and more attention, especially during the recent COVID-19 pandemic. In addition, luxury real estate in urban areas is also a place to connect elites with high value and sustainable growth over time.
FROM ACTUAL DEMAND
According to CBRE’s statistics, apartment projects in Ho Chi Minh City with river views have asking prices 24% to 81% higher than projects without or with limited views. Similarly, apartment projects in Ho Chi Minh City within walking distance of metro stations of Metro Line 1 recorded higher prices than projects outside of walking distance from 24% to 51%. .
The appearance of luxury real estate in urban areas comes from actual market demand, combined with factors such as location, view, product quality and management unit, which will increase the value of the product. Branded real estate in the city and this is a sustainable increase, not a temporary increase.
Besides, we see that the value of any product depends a lot on the maintenance, maintenance and upkeep of the product during the time the product is put into operation. Branded products when handed over will be managed by 5-star hotel management units, which are brands with a lot of experience in real estate management. Real estate managed by such a professional will always ensure that the value of the products is not lost but also increases over time.
On the other hand, reported by Wealth-X, the upper class population in Vietnam has increased by 13.9%/year in the period 2010-2019 and is forecasted to grow by 10.1%/year in the period 2018-2023 , is in the Top 4 countries with the highest growth rate of rich people in the world.
In New World Weath’s 2021 Real Estate Trends report, the elite seek housing with absolute security, privacy, trendy lifestyle, peer-to-peer community, high-class amenities and transport connections advantage. These are the characteristics of branded real estate. Therefore, the rise of the upper class will positively support the demand for luxury real estate in Vietnam.
In the future, the rapid growth of the rich group in Vietnam and the need to improve the quality of life will contribute to the activation of branded products in urban areas, especially projects located near the system. the subway. Branded real estate projects in urban areas will meet particularly strict requirements and standards for residents.
Soure : https://masterisesaigon.com/