BRANDED RESIDENCE IN HCMC INCREASED 7-8 TIMES
Super luxury apartments in Ho Chi Minh City used to be popular at the price of 80 million VND / m2. However, the price of luxury real estate in Ho Chi Minh City in 2021 has increased by 7-8 times compared to before.
At the end of 2018, the real estate market of Ho Chi Minh City appeared an apartment project located in the center of District 1 with an offering price of up to 230 million VND / m2. That was the highest price level in the market at that time.
However, recently, DKRA (a consulting and distributing business of real estate projects) said that in the second quarter, the super-luxury apartment line in Ho Chi Minh City will have a record price of up to VND 690 million. / m2, 3 times higher than the peak in 2018.
After the peak price in 2018, the real estate market in 2019 continues to be tumultuous with the super luxury project Centennial (District 1) of investor Alpha King (Hong Kong) with a announced price of up to 334 million VND / m2. .
Another project of this investor on Cong Quynh Street (District 1) announced the selling price of phase 2 exceeded 250 million VND / m2. However, due to legal issues, the above projects cannot be implemented.
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| A series of luxury housing projects appeared in the HCMC market in the past 3 years. Photo: Quynh Danh. |
Continuously set new peaks year by year
By the end of 2020, the resurgence of the project in the Ben Thanh quadrangle with the name of The Spirit of Saigon at the time broke the record of super luxury projects ever announced on the market with the number 460. -570 million VND / m2.
By the beginning of 2021, the super real estate market to Ho Chi Minh City was really active again when Masterise Homes launched an apartment project with a scale of more than 25 hectares at Ton Duc Thang Street (District 1) with selling price. for the international market from 415 million VND / m2. This is also a real estate project operated by an international hotel brand.
In particular, this investor acquired The Spirit of Saigon and renamed the project One Central HCM. Although the selling price of One Central HCM has not been announced, with the appearance with the world’s leading luxury hotel brand, the apartment products here will have the highest selling price in the history of real estate. in Ho Chi Minh City from before to now.
Not only focusing in the old downtown area, luxury projects in Ho Chi Minh City are also concentrated in Thu Thiem New Urban Area – the future center of Thu Duc City. Projects such as Empire City, The River Thu Thiem, The Metropole Thu Thiem have prices up to 170-185 million VND / m2.
Million VND / m25 of the highest priced luxury apartment project in Ho Chi Minh City Highest price recorded as of April 2021 Selling priceGrand Marina, SaigonThe MarQEmpire CityMetropole Thu Thiem The River Thu Thiem0100200300400500
According to JLL, the apartment market in Ho Chi Minh City is divided into 4 categories: Affordable apartments (about 1,100 USD / m2), mid-end (about 1,200-2,000 USD / m2), high-end (about 2,100-3,000 USD / m2). m2) and luxury (from 3,500 USD / m2 or more).
However, JLL’s representative also affirmed that apartment selling price is not the only criterion as the basis for classifying whether the project is super luxury or not.
Compared to neighboring markets, Savills Vietnam believes that although the price growth of high-end apartment projects in Hanoi and Ho Chi Minh City is higher than when comparing Kuala Lumpur (Malaysia), Bangkok (Thailand). Lan), but the price in the two largest cities in Vietnam is still quite low.
The luxury segment is still volatile and has unlimited fast growth CBRE Vietnam
Previously, in the end of 2019 report, CBRE Vietnam predicted that the luxury real estate price will still fluctuate and grow without limit. Luxury house prices can increase dramatically, reaching 35,000 USD / m2 (about more than 800 million VND).
According to experts’ analysis, location is one of the most important factors for developers to set the price of these products. Most luxury projects are built on land in prime centers, where the land available for residential real estate is increasingly limited.
In addition, the scarcity, construction quality, design and branding factor also contribute to the value of luxury real estate. Currently, a number of domestic developers have joined hands with famous international hotel brands to develop housing products that are managed and operated according to 5-star standards, maximizing the value of real estate. movables,
Opportunities and challenges for luxury real estate
According to Mr. Matthew Powell, Director of Savills Hanoi, branded real estate is the most advanced segment of the real estate market, which can include large or small projects, types of apartments or villas. .
Mr. Powell said that the appearance of these products will make the real estate market more diversified and mature compared to other regional markets.
He also said that the psychology of buying a house in Vietnam is similar to that in the world, that is, investors are looking for products with good construction quality, professional management and operation and good commercialization capabilities. From there, the product can bring attractive economic benefits to the owner.
Director of Savills Hanoi also said that the Vietnamese market still does not have many high-end and super luxury housing brands. Therefore, this position assessed that the market still has room for development.
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| The central area does not have much land for luxury projects. Photo: Quynh Danh. |
According to Mr. Nguyen Le Quoc Nhan, a real estate broker in the luxury segment in Ho Chi Minh City, selling goods is one of the difficult problems of super luxury real estate projects. There are projects that are well-sought, but there are also projects that are cheating in selling.
“Looking back to 2019, 18 villas of Q2 Thao Dien project (District 2, Ho Chi Minh City) with the price of more than 2 million USD / unit sold out within 40 minutes. Luxury apartment projects such as Empire City , Metropole Thu Thiem also has a significant number of buyers “, he said.
However, not every project can sell so quickly, despite its prime location and being developed by a number of reputable developers.
Price growth is not simply about raising the selling price, developers will have to invest more heavily in their products. Ms. Nguyen Hong Van, Market Manager of JLL Hanoi
Typically, the project The MarQ on Nguyen Dinh Chieu Street (Da Kao Ward, District 1, Ho Chi Minh City), although it has been open for sale for more than 3 years, has only sold over 50%. Or The River Thu Thiem project is similar to expensive projects in Ho Chi Minh City, but the selling speed is still slow.
“This failure is partly due to the sales method and the ability of the investor to create scarcity in the market,” added Quoc Nhan.
In another perspective, Ms. Nguyen Hong Van, market director of JLL Hanoi, said that not all investors have enough potentials to develop high-end projects. In addition to potentials, there is experience in project operations, cooperation with reputable brands, sales methods …
“It is possible that, in the near future, the apartment price list will be strongly adjusted. The price growth is not simply about raising the selling prices of residential products, instead, investors will have strong investment. hands over for their products, “said Ms. Nguyen Hong Van
Cre: zing.vn