(Dan Tri) - Luxury and high-end apartments are gradually taking up a larger proportion of the supply in major cities, including Ho Chi Minh City. The customer base of this segment is quite diverse.
High-end, luxury apartments dominate the HCMC market
The latest market news from the DKRA Group Research and Development Department updated to February this year shows that Ho Chi Minh City continues to see a supply of primary apartments with the highest price of VND493 million/m2.
The high-end and luxury apartment segment accounts for 76% of the primary supply in this populous city. In contrast, mid-range and affordable products hold a dominant position in the supply structure in neighboring provinces such as Binh Duong, Dong Nai, Ba Ria - Vung Tau, and Long An.
The price of nearly 500 million VND/m2 for an actual apartment was once mentioned from mid-2024, for an apartment in a luxury project in the central area of District 1, Ho Chi Minh City.
Ho Chi Minh City has overwhelmingly high-end, luxury apartments (Illustration: Trinh Nguyen).
According to the explanation of Mr. Vo Hong Thang - Deputy General Director of DKRA Group - apartments priced at nearly half a billion VND/m2 are not too many in the project's central District 1 (HCMC) portfolio, each block (building) has only a few apartments.
To achieve the above price, the project needs to converge many factors such as the "diamond of diamonds" location; an experienced developer with financial potential; international operating partners... Due to their scarcity, these products are unlikely to impact the general price level of apartments in the future, and their spread and influence on the entire market is not much.
Apartments costing half a billion VND/m2 in Ho Chi Minh City were also mentioned by CBRE Vietnam in its 2024 year-end report. This unit believes that 70% of new supply in the city this year will be high-end to luxury projects and projects opening for sale in the next phase.
The absorption rate of newly launched projects will reach an average of 70% of the number of units launched in the fourth quarter of 2024 and the whole year of 2024.
According to records, high-end and luxury apartments are gradually taking up a larger proportion of the supply in big cities, according to the market research unit Batdongsan.com.vn, in a report at the end of 2024. Hanoians search for luxury apartments the most (43%), followed by Ho Chi Minh City (33%), Dong Nai (1%)...
According to the research results of this unit, 34% of consumers decide to buy branded real estate because of services and amenities; 25% buy because of profit potential; 23% buy because of building maintenance and management; 10% because of brand recognition.
Buyer Profile
Sharing at an event, Ms. Tu Le - Operations Director of S&S Group - cited data from New World Wealth and Henley & Partners, saying that Vietnam is one of the countries with the fastest growth rate of millionaires in the world, increasing by 98% from 2013 to 2023. In the next 10 years, total personal assets in Vietnam are expected to increase by 125%, the fastest growth rate globally.
Research from the above unit also shows that people with net assets of 1 million USD or more often migrate to countries with favorable business environments, preferential tax policies, high quality of life or great investment potential. With rapid economic growth and a strategic location in Southeast Asia, Vietnam promises to be an attractive destination for international wealthy people.
Speaking to Dan Tri newspaper reporter, Ms. Trang Bui - General Director of Cushman & Wakefield - once stated that the customer group of luxury real estate could be global experts, regional experts, millionaires... These people are willing to spend large sums of money to have a private life, value and a screened residential community.
Source: https://dantri.com.vn/bat-dong-san/ai-mua-can-ho-chung-cu-500-trieu-dongm2-o-tphcm-20250312052838423.htm
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