Amidst signs of recovery in the real estate market after a long period of stagnation with limited new supply, the high-end apartment market in Ho Chi Minh City continues to record stable new supply and transactions.
The latest report from Cushman & Wakefield Vietnam on the Ho Chi Minh City apartment market shows that new high-end and luxury projects are emerging, and reputable developers continue to stand out in the market. In the first half of 2024, nearly 1,200 new apartments were launched, a 54% decrease year-on-year; of which, only two new projects were launched, contributing 66% of the new supply during this period, with the remainder belonging to subsequent phases of existing projects. 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, about 34% of new sales came from a new luxury project. 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 US$3,480/m2.
A luxury apartment project 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. Developed by KITA Group, the project comprises 82 luxury apartments (from floors 14-27). According to a representative of KITA Group, while real estate values in the central area may not increase dramatically, they are expected to steadily increase by 10-15% annually. Importantly, in terms of legal aspects, all customers purchasing apartments at Kieu by KITA will receive their land ownership certificates upon handover, which is expected at the end of 2024.
Contrary to the trend of moving to the suburbs, Ms. My Van (residing in Binh Chanh district) said that due to the demands of her business and the need for better healthcare for her family, she decided to look for a high-quality apartment to move to the city center.
"Given the ongoing difficulties in the global and local economies , buyer demand remains limited and cautious. Therefore, they will tend to focus on projects developed by reputable developers and offering attractive payment methods," experts at Cushman & Wakefield Vietnam commented.
Similarly, research by CBRE Vietnam also shows that in Q2 2024 alone in Ho Chi Minh City, over 70% of newly launched supply was positioned as high-end to luxury projects, with primary prices 2-3 times higher than the market average. In addition, some projects located in the city center that were launched 5-7 years ago are also offering a small number of remaining units at prices nearly double those of the previous launch.
According to CBRE Vietnam, with the upward trend in the primary market, along with projects adjusting primary selling prices higher than the asking prices in previous phases, the secondary market for apartments in Ho Chi Minh City also recorded a 4% quarterly and 3% annual increase.
Commenting on the current trend of branded real estate development, Mr. Mauro Gasparotti, Director of Savills Hotels, said: Branded residences, whether beachfront villas or high-end apartments in urban areas, are becoming increasingly familiar to the global real estate market, including Vietnam. To be recognized as an international brand, branded residence projects must ensure compliance with hotel service standards and construction quality standards, thereby ensuring the project's reputation and contributing to added value for property owners.
“Vietnam currently has six branded luxury residence projects under development. Following the two completed projects, Marriott Grand Marina Saigon and The Ritz-Carlton Hanoi, upcoming projects such as Nobu Residences in Da Nang, and Mandarin Oriental Residences in Phu Yen and Da Nang also demonstrate the market's interest in this product segment,” said Mauro Gasparotti.
According to VNA
Source: https://doanhnghiepvn.vn/kinh-te/can-ho-cao-cap-van-hut-khach-mua/20240905114717180
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