In the context of the real estate market showing signs of recovery after a long period of stagnation with limited new supply, the high-end apartment market in Ho Chi Minh City still recorded new supply and stable transactions.
The latest report by Cushman & Wakefield Vietnam on the Ho Chi Minh City apartment market shows that the market has seen the emergence of new high-end, luxury projects as well as reputable investors still standing out in the market. In the first half of 2024, nearly 1,200 new apartments were launched on the market, down 54% year-on-year; of which, only two new projects were launched, contributing to 66% of the new supply in this period, the rest belonged to the next phases of existing projects on the market. The luxury segment dominated the market with a 59% share of new supply in the first half of 2024.
According to Cushman & Wakefield Vietnam, the market recorded sales of approximately 2,100 units; of which, approximately 34% of new sales came from a new project in the luxury segment. Thanks to the launch of a new luxury project, the average primary price recorded a significant increase of 9% compared to the previous quarter and 8% year-on-year, reaching approximately USD 3,480/m2.
A luxury apartment project that is attracting attention in Ho Chi Minh City located in the central area, on Tran Hung Dao Street (District 5) is the Kieu by KITA project. The project is developed by KITA Group with a scale of 82 luxury apartments (from floors 14-27). According to the representative of KITA Group, the value of real estate in the central area may not increase dramatically but still increases steadily from 10-15% every year. In particular, in terms of law, all customers who buy Kieu by KITA apartments will receive a red book when the apartment is handed over, expected at the end of 2024.
Going against the trend of moving to the suburbs, Ms. My Van (residing in Binh Chanh district) said that due to the requirements of her job as well as the need for health care for her relatives, she decided to look for a high-quality apartment to move to the central area to live.
“Given the ongoing difficulties in the global and local economies, buyer demand is limited and cautious. Therefore, they will tend to pay attention to projects developed by reputable investors and offering attractive payment methods,” said experts from Cushman & Wakefield Vietnam.
Similarly, according to research by CBRE Vietnam, in the second quarter of 2024 in Ho Chi Minh City alone, more than 70% of the newly launched supply was offered with project positioning from high-end to luxury, with primary prices 2-3 times higher than the average price on the market. Along with that, some projects located in the city center that were offered for sale 5-7 years ago also offered a small number of remaining units at prices nearly double the previous launch.
According to CBRE Vietnam, with the price increase in the primary market, along with projects adjusting primary prices higher than the offering prices of previous phases, the secondary price market of apartments in Ho Chi Minh City also recorded an increase of 4% quarterly and 3% annually.
Assessing the current trend of branded real estate development, Mr. Mauro Gasparotti, Director of Savills Hotels, said: Branded residence, whether it is a coastal resort villa or a luxury apartment in an urban area, is becoming more and more familiar to the global real estate market; including Vietnam. To be internationally branded, branded residence projects must ensure compliance with hotel service standards and construction quality that meets brand standards, thereby helping to ensure the prestige of the project as well as contributing to bringing added value to real estate owners.
“Vietnam currently has six luxury branded residence projects under development. Following the two projects that have been handed over, Marriott Grand Marina Saigon and The Ritz-Carlton Hanoi, projects that are preparing to launch such as Nobu Residences in Da Nang, Mandarin Oriental Residences in Phu Yen and Da Nang also show the market’s interest in this product segment,” said Mr. Mauro Gasparotti.
According to VNA
Source: https://doanhnghiepvn.vn/kinh-te/can-ho-cao-cap-van-hut-khach-mua/20240905114717180
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