Recently, it has become more & more common to see the prices of several real estate projects in cities like Hanoi & Ho Chi Minh surpass the 30,000 USD/sqm mark.
For instance, in Ho Chi Minh City we can find projects in District 1 such as One Central Saigon with a starting price of around 35,000 USD/sqm; Spirit of Saigon, also in District 1, with an expected price of nearly 20,000 USD/sqm and lastly Grand Marina Saigon by Masterise Homes is expected to launch at a price of around 15,000 USD/sqm whereas in Hanoi, The Grand Hang Bai project launched with an asking price of 30,000 USD/sqm.
Due to the high prices, many have start wondering if its worth to invest in real estate in Vietnam, however, as a study from CBRE has shown, the super luxury segment offers a different and unique kind of value different from the ordinary real estate projects. Projects under the super luxury category offer higher standards in terms of construction quality, design, and service. The buyer of this property type is also different than the ordinary, they see the real value of the project and are not discourage by the price, many of them are wealthy investors coming from overseas.
According to CBRE Vietnam, although the super luxury real estate segment in Vietnam is not as developed as other countries in the world, it will soon become a playground for investors in the near future. However, the market needs time for the buyers to get used to it.
One of the characteristics of the super luxury segment is that it is extremely limited and scarce. For instance, due to the limited amount of land available, projects in the city center are very hard to develop. In addition, many of this luxury real estate projects are developed by some of the leading brands in the world creating a unique value that goes beyond the physical product. For them a price of 15,000 – 40,000 USD/sqm is not a problem, considering all the added value they bring to the table.
The development of the luxury and super-luxury segments in recent years, represents the change, development and growth of the Vietnamese real estate market, which is closing the gap with some of the biggest markets around the globe.
According to most industry experts, luxury real estate still has a lot of room for development in Vietnam. Along with the growth of Vietnam’s economy and the emergence of a growing wealthy class, the demand for super-luxury products will also increase proportionally.
In addition to cars and designer handbags, one of the most sought-after ultra-luxury items is real estate. According to Knight Frank data, in the portfolio of the super-rich, real estate is taking the top position with 27%, followed by stocks (23%), bonds (17%), collectibles (5%). %), gold/gems (3%), and cryptocurrencies (1%).
According to Savills, the new super luxury line of real estate product is the Branded Residences. The concept is understood as a residential project which is designed, built and managed according to the quality standards of a luxury brand (generally a hotel brand).