The appetite for luxury properties remains strong & isn’t expected to slowdown anytime soon.
Luxury projects are continuing to make their mark in Ho Chi Minh City and Hanoi. This is according to real estate firm CBRE who anticipate the thirst for this segment to be a pattern throughout the year. This goes against earlier concerns for this end of the market.
Luxury projects come with an array of modern facilities that are not always typical at the lower end of the market. As the Vietnamese continue to turn to property as an investment asset, housing standards are pushed up. Many are looking beyond the four walls of the property. The surroundings are equally as important and developers are responding to these demands.
Over the last two years in Hanoi the market consisted of 30 percent of luxury properties. This supply is not expected to slowdown anytime soon with a surge of interest in Tay Ho and Ba Dinh districts of the city. In Ho Chi Minh City it is predicted that values will rise between four and seven percent thanks to the heightened interest as demonstrated by one project marketed by CBRE that was completely sold out despite prices starting at VND 5 billion.
The strength of the upper tiers of the market is contrary to previous forecasts from earlier in the year. It was thought that the top end of the market may have little movement and could potentially take a hit. But big name developers such as Vingroup, Sun Group and CEO Group are building to international standards. This coupled with strength of the market helps draw more international investors to this corner of the globe.
Aside from the luxury market, the condotel sector is performing well. Classed as a condominium that operates as a hotel, the service that is offered at a condotel is attracting interest. Plus Vietnam is increasingly becoming a hot tourist destination so the condotel slots well into this market. Naturally the popular tourist destinations of Danang and Nha Trang have experienced a particular surge in this type of property.
