Where does Branded Residences price in Vietnam stand compared to the region?
With the price approaching 20,000 USD / m2, super luxury real estate in Vietnam is still considered low compared to many regional markets such as Hong Kong, Singapore …
Branded housing – that is, an apartment associated with a well-known brand, usually a hotel – is not a common product in the residential real estate market. This is the most upscale segment in luxury real estate. Worldwide, branded properties account for only about 55,000 apartments in about 400 projects.
This branded residences market is mainly driven by the group of super-rich people in the world with a minimum investment cost of $ 1 million.
Appearing in branded houses in Vietnam
The launch of the Grand Marina, Saigon real estate project in the Hong Kong market developed by Masterise Homes and Marriott International at the end of March with a starting price of up to 432 million VND / m2 caused ” “domestic real estate market” shocks by unprecedented selling prices. These are the first hotel-branded real estate in the downtown area in Vietnam.
Previously, a number of other branded real estate projects were also launched such as Casa Marina Premium (Quy Nhon, Binh Dinh) or Four Seasons Resort Hoi An (Quang Nam) …, but mainly in the segment. resort real estate.
According to new research published by Savills International, the locations of branded residences in the world include Dubai, Miami, New York. In particular, the report also noted many emerging markets such as Vietnam, UK, Morroco, Malaysia, Australia, Saudi Arabia and Egypt.Wie Kratom für Training und Bodybuilding nützlich sein kann androlic ada: die besten bodybuilding-spiele planen workouts.
The Asia-Pacific region is forecast to be a hot spot generated by the growing number of projects. Investment costs here are lower due to less development risks but have an attractive potential to access new demand from a source of customers. Currently, the Asia-Pacific region has 120 projects already in operation and 28 projects being implemented. The main supply in major urban centers accounts for 78%, while the remaining 22% is in resorts.
By the end of the first quarter, Grand Marina, Saigon is the highest priced apartment project in Vietnam with a minimum published price to the international market of 18,000 USD / m2. Thus, an apartment here costs about more than 1 million USD to nearly 2 million USD.
This price has brought Vietnamese branded residences close to some markets in the region. Malaysia’s first real estate project was 8 Conlay in Kuala Lumpur by YOO in partnership with European hotel brand Kempinski. The 1-3 bedroom apartments here are sold for between $ 550,000 and $ 1.16 million.
The Residences at Mandarin Oriental in Bangkok (Thailand) is also the first branded residences project of the famous hotel operator Mandarin Oriental in Southeast Asia. With 146 products, the 2-bedroom apartments here cost about $ 1.4 million and $ 2.8 million for a 3-bedroom apartment.
As one of the markets with the highest growth rates in the region, branded residences prices in Vietnam are considered quite “soft” compared to some other markets in the region.
Sculptura Ardmore Building in Singapore. Photo: Boulevard.co
In Singapore, in 2018, an apartment in the nearly 1,000 square meter Sculptura Ardmore building sold for $ 43.8 million. Or another penthouse at The Marq building located in Paterson Hill over 1,600 square meters has been valued at up to $ 74 million. These projects are located in District 10, an area that is always favored by wealthy developers such as Nassim, Ardmore, Draycott.
Similarly, in Hong Kong, The Peak is also home to branded residences with prices up to $ 149 million for an apartment or $ 270 million for a mansion.
The rise of the Asian super-rich
However, the 170% growth in the last 10 years of luxury real estate worldwide has shown that the super-rich have grown faster than originally expected by developers of branded residences
Knight Frank’s The Wealth Report 2020 shows that Vietnam has 458 people with a net worth of $ 30 million or more – in the UHNWI group of the world, up 7% from a year ago. This report predicts that for the next 5 years, Asia will be the region with the highest growth rate of the super-rich at 44%.
Among those economies, India tops the growth forecast, with the number of super-rich increasing 73%. Followed by Vietnam with 64%, China with 58% increase and Indonesia with 57% increase. In terms of the growth rate of the super-rich globally in the next 5 years, Vietnam ranks third after India and Egypt (an increase of 66%).
More and more million dollar real estate products in Vietnam. Photo: Quynh Danh.
This has been forecasted in the “A Look at Wealth: Millennial Millionaires” report by Coldwell Banker Global Luxury and WealthEngine, which predicts that by 2030, the Millennials (those born in 1982 2000) will hold five times more assets than they own today and make them capable of shaping the future of luxury real estate trends.
The analysis also shows that the Millennials have a much higher sense of travel than their parents – the Baby Boomer generation. Therefore, they have a need to own real estate in many countries around the world instead of just focusing in one country or region to increase the living experience. At the same time, this group of customers also hope to have high-class services like hotels in their own houses synchronously.
Cre: zingnews.vn