Million-dollar apartments and mansions attract the rich in the same way they collect luxury items. The Marriott brand has announced the selling price of more than 32,000 USD per m2 (about 750 million VND per square meter) of apartments at the Edition West Hollywood project. The price is expensive, but more than 80% of the products are sold out in just a few months of opening.
Edition West Hollywood - Marriott's luxury apartment project has been noticed with prices starting from 4 million USD. Photo: Edition West Hollywood
In August 2021, American real estate investors also recorded a deal that one person spent up to 31 million USD to buy a penthouse on the top floor of The Ritz-Carlton Residences project, Sunny Isles Beach (Miami, USA) although prices have doubled compared to 4 months ago.
Before that, another person also spent more than 20 million USD to buy the Ritz-Carlton branded apartment of billionaire Sidney Kimmel - producer of the movie Crazy Rich Asians. Also in this building, casino magnate Steve Wynn also owns a penthouse worth more than $70.
These transactions worth tens of millions of dollars are proof of the attraction of luxury real estate products to the super rich. Appeared more than a century ago, but this segment has only been popular in the past 20 years, becoming a new "trend" to buy branded goods, like the way the rich collect branded goods.
The reason the rich buy branded real estate
Unlike ordinary real estate products, branded real estate is often associated with the name of a famous name. It can be a name in the field of hotels (hotelier) such as JW Marriott, Ritz-Carlton, Four Seasons ... or lifestyle brands (non-hotelier) such as fashion, cars ...
Today, not only buying dresses that are handmade by Haute Couture brands like Elie Saab or a Porsche supercar, the rich also prefer apartments and mansions labeled Elie Saab or Porsche. With a value many times higher than luxury goods such as branded bags and cars, branded real estate products also help affirm the owner's position.
The Porsche Tower branded apartment, Sunny Isles Beach, Miami allows residents to put a supercar right in their living room. Photo: CNN Style
Not only that, with the characteristics of a real estate product, experts say that luxury real estate is also considered by the super-rich as an asset channel with potential for price appreciation. Many projects also demonstrate the ability to increase prices despite the epidemic or market crisis.
These factors have partly made luxury real estate grow strongly in recent years. According to an in-depth report by Savills World Research published in November 2021, the supply of luxury real estate recorded a growth of 230% globally over the past decade despite the impact of the pandemic. Currently, the global supply of luxury real estate is 580 projects and this number is forecast to continue to nearly double by 2026 with 900 projects.
Vietnam catches the trend
It is a relatively new concept in Vietnam, but luxury real estate has begun to resonate, attracting a large number of the rich and many famous stars. Typically, husband and wife Dong Nhi - Mr. Cao Thang since 2021 have owned JW Marriott branded apartment in Grand Marina, Saigon priced at 16,000 USD per m2 in a central project in District 1, Ho Chi Minh City. Recently, singer Ha Anh Tuan also owned a Marriott penthouse in the same project.
Perspective of the living room of Ha Anh Tuan's Marriott penthouse. The apartment is expected to be handed over in the first quarter of 2023. Photo: Grand Marina, Saigon
Research results of Savills show that Vietnam is in the top 10 fastest growing luxury real estate markets in the world. The supply of luxury real estate has increased by 11% on average since 2017. By the first quarter of 2021, Vietnam has 24 luxury real estate projects with more than 2,200 apartments.
Like projects in the world, this product line in Vietnam is also expensive. CBRE recorded two branded projects with the highest selling prices in Vietnam up to the present time. Grand Marina, Saigon located in the center of Ho Chi Minh City with the asking price from about 16,000 USD per m2. Ritz-Carlton Residences, Hanoi's branded apartments are priced from about $35,000, equivalent to about one billion VND per square meter.
These two luxury real estate projects are developed by Masterise Homes, in cooperation with Marriott International and associated with major hotel brands such as Marriott, JW Marriott and Ritz-Carlton.
However, according to Masterise Homes' assessment after many successful launches, the selling price of this type of property in Vietnam is suitable for the affordability of customers with financial abundance and familiarity with the new style. branded way of life.
The increase of the rich in Vietnam is also a factor that makes the trend of owning luxury real estate stronger. According to a report by Knight Frank, the number of people with assets over 30 million USD (about 680 billion VND) will surpass 1,500 by 2026.
Mr. Gibran Bukhari, Sales Manager of Masterise Homes, said that Vietnamese customers, especially those who have had the opportunity to experience living and traveling abroad, are placing high and delicate demands. than with domestic real estate.
“This customer group also wants the house to be a symbol of status and success, with a sustainable value against all events, far beyond the usual luxuries such as handbags or supercars. The advantages of branded real estate products will meet this," he said.
