The heat of the branded real estate market in Vietnam is increasing day by day.

New real estate development trends in the region

Branded Residences is a type of housing, project formed, designed and operated by famous, prestigious units and brands in the world to create high-class real estate products with experiences and quality beyond expectations. This is also the type that attracts many customers and investors in the real estate market in recent times.

A recent Savills report also shows that the Asia-Pacific region has become one of the global hotspots for branded real estate, accounting for 23% of the world's total supply. Since the first branded real estate project was launched in 1988, the region has witnessed remarkable growth, especially in the past decade.

As of mid-2023, more than 150 branded real estate projects have been completed in CA - TBD, and more than 150 other projects are in the implementation stage. This growth not only meets historical trends but also shows the strong development potential of the branded real estate segment, with the total number of projects increasing by more than 160% over the past 10 years.

Branded real estate in CA - TBD is not only popular in resorts but is also spreading to big cities, which are considered the main residence for the super-rich. Phuket (Thailand), one of the leading locations in the region, owns the highest number of completed projects and is expected to reach more than 40 projects by 2030.

Top 5 strong growing branded real estate markets according to Savills research

In addition to Phuket, other cities such as Da Nang (Vietnam), Bangkok (Thailand), Kuala Lumpur (Malaysia), and Manila (Philippines) are also becoming key markets for this type of property. This diversity in locations increases the attractiveness and makes this type of real estate particularly appealing to both domestic and international customers. Notably, in large urban centers, branded real estate projects are not only ideal places to live for high-class individuals and families but also become a potential investment destination.

Commenting on this type, Mr. Matthew Powell, Director of Savills Hanoi, assessed: "The diversity of location, type, brand and design continues to be the strength of branded real estate. The combination of diversity and prestige of the investment brand, along with the assurance of quality, exclusivity and security, has created a sustainable attraction for this type. Thanks to that, branded real estate has grown impressively over the years, becoming an attractive option for investors and potential buyers".

The prices of branded real estate are typically high due to the association with quality, service, and luxury. However, the premium price can vary significantly depending on the location, brand, and type of project. In the CA - TBD region, some branded real estate projects achieve prices lower than the global average due to the diversity of uses and the scale of the chain from high-end to mid-range.

Mr. Matthew Powell, Director of Savills Hanoi

The reason for this lower price is that projects in CA - TBD often focus on the domestic or regional buyer segment, who can afford to pay at the mid-range level but still want to enjoy the high-class facilities and services that this type of property offers. In addition, these projects are also designed to serve a variety of uses, from primary residence to "second home", making them more attractive and suitable for the needs of a diverse range of customers in the area.

The strong growth of branded real estate is driven by a stable regional economy. Specifically, in April 2024, the International Monetary Fund (IMF) raised its growth forecast for the CA-PTB region this year to 4.5%, up 0.3 percentage points from six months earlier. Economic development and the number of wealthy people in the region have also increased, contributing to the trend of developing branded real estate.

In addition, the recovery of the tourism industry has also contributed significantly to attracting capital for the branded real estate market, especially for hotel projects. With a significant increase in the number of tourists and an average stay of 1-2 days longer, CA - TBD is emerging as a leading destination for branded real estate investors in the world.

Vietnam holds many advantages to develop branded real estate .

Mr. Matthew Powell commented that Vietnam is a bright spot in the region for branded real estate, especially in coastal areas. In Vietnam, economic growth, along with the rise of the upper class, has created favorable conditions for the development of branded real estate projects.

In addition, according to global wealth intelligence firm New World Wealth and investment migration advisory firm Henley & Partners, from 2013 to the end of 2023, the number of millionaires in Vietnam increased by 98%, reaching 19,400 people. The rapid increase in the number of rich people in Vietnam promotes the trend of owning a "second home". They often invest in high-end resort projects, both to enjoy and to make a profit through rental trust programs when not in use.

In particular, big cities such as Da Nang, Hanoi, and Ho Chi Minh City are gradually becoming attractive destinations for branded real estate projects. Typically, in Da Nang - Hoi An, 5 branded real estate projects have been completed. Along with more than 10 projects under development, Da Nang - Hoi An promises to continue to be in the top of the regional market in terms of the number and scale of projects in the near future.

Vietnam is a potential market for developing branded real estate, with many products having been launched in the market in recent times.

"Vietnam not only possesses rich natural landscapes, but also has a pleasant tropical climate all year round. These are key factors that luxury real estate investors consider when looking for locations to develop projects. The combination of rich natural beauty with sophisticated architecture and high-class management services not only enhances the value but also creates sustainable attraction for projects," Mr. Matthew Powell further explained.

Although the luxury real estate market in Vietnam is on the rise, there are still many challenges to overcome. Factors such as legal regulations, administrative procedures, and competition from other regional markets can all affect the development of this market. However, with the growth potential of the upper class and strong support from the Government in infrastructure development, the luxury real estate market in Vietnam can still make significant progress in the future.

Source: https://www.congluan.vn/suc-nong-cua-thi-truong-bds-hang-hieu-gia-tang-cung-su-phat-trien-kinh-te-va-du-lich-post307992.html