New opportunities for the luxury real estate segment?

VTC NewsVTC News30/06/2023


New capital for real estate market

The real estate market has seen a bright spot as the State Bank of Vietnam has continuously cut interest rates to boost growth through credit channels, reduce financial costs for businesses and households, thereby stimulating business investment and strengthening consumer sentiment.

In 4 consecutive months, the State Bank of Vietnam has cut the operating interest rate 4 times. With such a "lightning-fast" rate of interest rate reduction, interest rates may return to the 2019 level, only about 5.3-7.9%/year, for deposits with terms from 6 months to less than 12 months.

Continuously decreasing operating interest rates make real estate more attractive to investors with capital potential than bank deposits. (Photo taken at an event introducing a resort real estate project in May 2023)

Continuously decreasing operating interest rates make real estate more attractive to investors with capital potential than bank deposits. (Photo taken at an event introducing a resort real estate project in May 2023)

Previously, according to statistics from the State Bank of Vietnam, by the end of December 2022, total deposits at credit institutions were VND 11.82 trillion due to deposit interest rates sometimes reaching 12%/year for a 12-month term. Currently, high-interest deposits with a half-year term are approaching maturity.

However, with the move to reduce interest rates from the State Bank, continuing to deposit money in banks at the new interest rate of 5.3-7.9% is no longer attractive. According to analysts, this maturing cash flow may shift to investment channels that bring higher profits such as real estate and stocks.

Potential of luxury real estate in Ha Long

According to the Vietnam Association of Realtors (VARS), in the first 3 months of the year, the supply of luxury housing was very scarce, accounting for 4% of more than 25,000 products in all segments. In particular, projects developed by reputable investors, with convenient locations and guaranteed handover quality, still had an absorption rate of up to 80%, with the number of transactions recorded in the luxury segment reaching 28%.

The scarcity and high absorption rate of luxury real estate make professional investors with strong capital potential choose this segment to invest in instead of keeping money in the bank. In particular, products with seafront locations and high added value are being "sought after" when it is predicted that the real estate market will escape the downward cycle from the third quarter of 2023.

Park view of a Grand Bay Halong Villas. (Photo: BIM Land)

Park view of a Grand Bay Halong Villas. (Photo: BIM Land)

Super luxury real estate on the seafront of Ha Long is also increasingly attractive to sophisticated investors. Firstly, because the remaining land fund of super luxury projects on the seafront is quite limited.

Second, although the prices of beachfront projects have increased sharply, the price of products in Ha Long is only about 2/3 of the price of products in the same segment in Da Nang, Nha Trang, Phu Quoc...

Third, these products must meet all the criteria: prime location near the sea, private beach, long-term ownership... Finally, to complete such projects, large, reputable, and powerful real estate developers are needed.

The value of Grand Bay Halong Villas

In fact, when introduced to the market, super luxury real estate projects with sea frontage often record rapid liquidity and strong price increases. In addition, positive developments in infrastructure, planning and tourism potential in Quang Ninh are also factors that promote demand for sea front real estate in Ha Long, making them increasingly scarce and becoming assets with high added value.

Perspective of Presidential Villa in Grand Bay Halong Villas project. (Photo: BIM Land)

Perspective of Presidential Villa in Grand Bay Halong Villas project. (Photo: BIM Land)

As one of the projects that meets the "taste" of sophisticated investors, Grand Bay Halong Villas by developer BIM Land is considered to have high added value.

The project's villas are located on an extremely limited bay-facing land fund on peninsula 3 of Halong Marina Tourist Urban Area, with a bow-shaped terrain, a private coastline stretching nearly 520m with 3 large lakes and 2,600m2 of landscaped park...

The design of the villa is inspired by the Southern California architectural style, with two main colors of gray and white in harmony with the bay, expressing an elegant, sophisticated, and timeless aesthetic taste. In addition, high-class services and a separate, closed community with private resort space are also factors to position a safe and secure investment.

With positive forecasts from real estate experts about the growth cycle returning in the fourth quarter of 2023, along with idle capital looking for a better "landing place", Grand Bay Halong Villas is considered to have great potential, suitable for investors to consider making a decision.

Bao Anh


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