Demand for high-end property fuels price rises

business March 20, 2017 19:22

By Viet Nam News
Asia News Network
Ho Chi Minh City

High-end and luxury housing continues to be an attractive segment in the Vietnamese real estate market, with high demand and a good purchasing scale, experts have said.



   A report from property market researcher CBRE said there would be many new high-end and luxury projects this year in Hanoi and Ho Chi Minh City.

    Nguyen Hoai An, deputy head of the research and consultancy department under CBRE Vietnam, predicted that sales would be good this year in both cities.

    “Prestigious investors have developed the projects, which are expected to attract many high-income customers,” An said.

   In Hanoi, the number of high-end and luxury condos accounted for 30 per cent of the market in the last two years.

Supply in this segment this year is expected to be over 25 per cent, An said, adding that projects in the Tay Ho and Ba Dình districts of Hanoi would be in high demand.

   In HoChi Minh City, the supply is also predicted to be stable this year.

Duong Thuy Dung, a senior official at CBRE HCM City, said that luxury and high-end projects were attracting customers because of their modern facilities.

   Dung said that consumers today were not only concerned about shelter, but also about the surrounding environment of their house or apartment.

   He said that prices this year would increase by 4-7 per cent against last year thanks to the projects’ central location.

   Recently, Phu My Hung opened sales for its new high-end project called Phu My Hung Midtown.

   Although the price is from 5 billion dong (US$219,000) per condo, it has attracted many customers.

   Nearly 100 per cent of condos have been sold, according to the company.

  Earlier predictions by experts said the sale of luxury property would be stagnant this year, while low and medium-level segment would strongly develop.

   However, the high-end and luxury market as well as the “condotel” segment have seen good sales and are expected to further develop this year.

   Evan Hunh, chairman of the Vietnam National Association of Real Estate Professionals, said that Hanoi, Ho Chi Minh City, Danang and Can Tho had potential.

   He said that many projects begun by the Sun Group, Vingroup FLC and CEO Group have met international standards.

   Evan said that investors would see success in the property market.

   Pham Huu Thang, deputy chairman of the Vietnam Real Estate Association, said the condotel market had grown because of Vietnam’s integration into the world market and the increasing number of visitors.

He said the supply and sale of condotel projects had increased in Dànang and Nha Trang.

The high-end segment as well as condotel and “officetel” projects in tourism cities have brought more choices for foreigners.

   “Along with investors, foreigners and professors working in the country are potential customers,” Thang said.