Along with the increase in the number of rich people in Vietnam and the need to own and spend on luxury products, the two luxury real estate projects in Ho Chi Minh City and Hanoi have the average price twice. are 14,700 and 25,000 USD/m2, respectively, reaching the selling rate from 70% of the units opened for sale.
In 2021, the Vietnamese market has welcomed the first luxury real estate projects in the ultra-luxury segment (prices over 12,000 USD/m2). At this price, some investors are skeptical about the absorption rate. However, according to the latest report of CBRE, two luxury real estate projects in Ho Chi Minh City and Hanoi have an average price of 14,700 and 25,000 USD/m2 respectively (equivalent to 348 and 593 million VND respectively. /m2), all achieved the selling rate from 70% of the units opened for sale.
As reported by CBRE,
About 20 years ago, the first real estate projects were developed associated with hotel management brands and were motivated by the existing tourism market.
However, the situation gradually changed, the class of businessmen, merchants and billionaires thrived 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.
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,...
Worldwide, the supply of lifestyle luxury properties accounts for about 15-20% of the total supply of luxury properties.
In Vietnam, information about the first lifestyle brand real estate project appeared in District 9 (Thu Duc City), Ho Chi Minh City. CBRE forecasts that the trend of this type of real estate will develop strongly, especially in Vietnam, driven by the growth of the super-rich and the development of the luxury goods market.
Along with that, 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, in the Top 5 countries with the fastest growth rate in the world. world, according to Wealth-X.
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 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 - who have the 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.
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.” Map District 2 planning – land use plan