Why are penthouse apartments so expensive?

Is it worth the price?

Chi Thanh Nga, a leader of a real estate company in Ho Chi Minh City, used her connections and acquaintances to register to buy a penthouse at Phu My Hung's Aurora project (District 7, Ho Chi Minh City), but was unsuccessful. This project has a total of 5 penthouse apartments with areas ranging from 170 to 250 ^m² depending on the unit. Meanwhile, the average selling price per square meter of an apartment in this project is approximately 100 million VND, equivalent to 17-24 billion VND per unit, not including interior design costs.

Living in penthouse apartments is considered a way for the wealthy to show off their "status."

What many investors appreciate most about penthouses is the absolutely secure security system. Living here, investors will have access to elevators, private entrances, and benefit from the modern, intelligent management and operation systems of the luxury apartment building. This makes penthouses expensive, even more expensive than villas on the ground floor.

Mr. Doan Ngoc, General Director of PropertyX Joint Stock Company

Responding to Thanh Nien newspaper , a leader of Phu My Hung Company said that the developer recently launched the sale of apartments in the project and almost all were sold out in just one day. The developer "locked" the penthouse inventory and apartments on floors with gardens, refusing to sell them because they are rare. A year earlier, the Antonia project by the same developer also sold penthouses for over 20 billion VND/unit, in their raw state. To live in them, owners had to invest tens of billions of VND...

However, the price and scarcity of penthouses at the Aurora project are still quite "ordinary" compared to the Serenity Sky Villas apartment project (District 3, Ho Chi Minh City). This project only has 3 penthouses, each approximately 450 ^m² (excluding garden and swimming pool area), with private gardens and swimming pools. Due to its prime location, scarcity, and comprehensive services, each penthouse costs nearly 100 billion VND.

Similarly, at Capitaland's Define project in Thu Duc City (Ho Chi Minh City), the penthouses are even more sought after, with only two units in the entire project, each approximately 500 ^m² in size, featuring a private swimming pool, garden, elevator, and entrance. Due to their scarcity, each penthouse costs nearly 100 billion VND. According to Thuy Nguyen, a real estate agent in the area, both penthouses were reserved by customers as soon as they went on sale.

Mr. Minh Trong, a real estate agent for Masterise Group, said that at the Grand Marina Saigon project (District 1, Ho Chi Minh City), which the group is the investor of, they showed us a 300 ^m² penthouse priced at approximately US$18,000/ ^m² , or about VND 130 billion. This penthouse is located in District 1, boasts a "million-dollar" view overlooking the Saigon River and the luxurious marina. Furthermore, the upper floor of the penthouse connects directly to amenities on the 46th floor of the building, including a swimming pool and gym.

The leader of a real estate group in Ho Chi Minh City said that in any project his group invests in, they always reserve the top floors for penthouses or duplex apartments with large enough areas to accommodate multiple bedrooms, gardens, swimming pools, etc. Due to their large size, the price of these apartments is also very high. Therefore, the investor must come up with unique and luxurious design ideas to target wealthy people and the upper class.

However, in some cases, penthouse residents also face many inconveniences, even "laughable" situations. For example, Ms. Thu Phuong lives in the Masteri Thao Dien apartment complex (Thu Duc City). She bought the apartment for approximately 23 billion VND (unfinished) plus about 7 billion VND for interior finishing. However, after a while, problems arose because the penthouse is on the top floor of the building and therefore exposed to all kinds of rain and sun. Several times, her apartment was flooded, with water entering and damaging her furniture due to small and clogged drainage pipes.

"Once, while my family was away, rainwater flooded the house, even overflowing into the hallway and into the elevator. Not only was the furniture damaged, but I also had to pay for elevator repairs. Feeling extremely frustrated and inconvenienced, I sold the penthouse and bought a townhouse for more comfort," Ms. Phuong said.

Meanwhile, residents of a luxury apartment building in District 3 (Ho Chi Minh City) are sweating profusely over the exorbitant management fee of up to 69,500 VND/ ^m² . For a 459 ^m² penthouse, the management fee alone amounts to nearly 32 million VND/month, not including parking fees which can reach tens of millions of VND.

Or consider the residents living in penthouse apartments worth tens of billions of VND at the Millennium apartment project (District 4, Ho Chi Minh City), who are frustrated with the chaotic situation because most of the apartments are serviced units, with people coming and going constantly, even late at night.

In many cases, owners of expensive penthouses share the same fate as renters, having to wait for elevators and facing other inconveniences.

Expensive because of the exclusive amenities.

Mr. Quang Tung, a real estate investor in Thu Duc City, calculated that with approximately 100 billion VND to buy a penthouse, he could easily purchase a 500 ^m² plot of land in Thanh My Loi area (Thu Duc City) to build a "mansion." Meanwhile, many penthouses in apartment buildings do not meet the standards and luxury of those in developed countries; they are merely apartments on higher floors with larger areas than regular apartments.

Conversely, Mr. Doan Ngoc, General Director of PropertyX JSC, argues that penthouses are often more expensive than ground-level villas because, for the same location and size, sky villas usually offer beautiful views, are limited in number, and are considered "VIP" or "limited" properties. In major cities today, penthouses are being built in increasing numbers with luxurious interiors and full amenities.

"Penthouses are apartments located on the top floors of towers, featuring modern and luxurious designs far superior to regular apartments. Furthermore, being situated on the highest floor of a building, penthouses avoid the impact of traffic fumes and noise pollution. What many investors appreciate most about penthouses is the absolutely secure security system. Living here, investors will have access to elevators, private entrances, and benefit from the modern and intelligent management and operation systems of the high-end apartment building. This makes penthouses expensive, even more expensive than ground-floor villas," Mr. Ngoc explained.

DKRA Group's Deputy General Director, Tran Hieu, also stated that most penthouses are more expensive than ground-level villas because they are built at a higher elevation, offering significantly better security and safety. Furthermore, these expensive penthouses are developed by large investors with innovative ideas, creating added value for the project and the apartments. In a project, the number of penthouses is usually limited, making them scarce, and the comprehensive services offered reflect the owner's status and distinction.

Nowadays, wealthy people are moving to "high-rise villas" instead of ground-floor mansions because they are unique, rare, and prestigious. However, penthouses in affordable apartment buildings are not being bought by many. While apartment prices don't appreciate as much as ground-floor properties, wealthy people are now reluctant to live on the ground for various reasons compared to the privacy offered by penthouses. Meanwhile, the rich and super-rich prioritize consumption and amenities over investment, so they don't pay much attention to property price appreciation.

Real estate expert Tran Khanh Quang

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