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Super rich people prefer million dollar real estate in Vietnam

Sunday - 24/02/2019 01:15
The luxury housing market in Vietnam is forecasted to be exciting thanks to the rise of domestic and Asian super-rich.
According to the report of the Future of luxury houses announced by Savills, the number of super rich people in Vietnam and Asian countries is increasing, which has a positive impact on the development and consumption of million-dollar real estate in Ho Chi Minh City and Hanoi.

This unit said that the number of super-rich people in Vietnam and their assets volume continued to grow continuously in the last 5 years, since 2013 and is expected to continue to increase in the near future. The upper class is the ideal demand for the million-dollar housing market in developed cities.

Meanwhile, the revised Housing Law allows foreigners to own houses in Vietnam with a limited room that does not exceed the rate of 30% of products in the project, creating a demand for high-value real estate investment from neighboring countries. Since 2015 when this policy comes into effect, the percentage of foreign owners in many high-end and luxury projects has shown signs of increasing, mainly buyers from Taiwan, Hong Kong and Korea.
usd millionaires in vietnam are reported by credit suisse global wealth
USD Millionaires in Vietnam are reported by Credit Suisse Global Wealth

Savills forecasts that demand for luxury housing products (worth millions of dollars) in Vietnam is expected to continue to grow thanks to the increase of the domestic super-rich and Asian. In the past few years, the luxury housing segment in Vietnam has attracted more and more foreign investors.

However, the gap between luxury real estate projects in Vietnam compared to international standards is still very large. The challenge of this segment is limited land availability, especially at prime locations in the urban center. This makes it more difficult to invest in developing luxury projects.

Process and procedures for project development, from land acquisition and compensation to licensing and bidding are often complex and time-consuming, especially for foreign investors. In fact, there are many investors who want to enter the market, but cannot access the land fund in beautiful locations in the center.
Super-rich-in-Asia-according-to-Credit-Suisse-Global-Wealth
Super rich in Asia according to Credit Suisse Global Wealth


General Director of Viet An Hoa Real Estate Investment Company analyzed and observed developments in luxury real estate market in HCM City in 2018, showing that this market share received a new wind from the super rich in the country and ASIAN.

With the Vietnamese super-rich, the trend of moving into luxury and super-luxury apartments has increased rapidly compared to the past thanks to the advantages of prime location, high amenities and multi-layer security. Meanwhile, Asian super-rich people landed in the million-dollar housing market in Vietnam, aiming at a big gap in price of comparable products compared to developed cities in the region.

Currently, the average selling price of luxury real estate segment in HCMC is still very low (only 25-30%) compared to other cities like Singapore, Hong Kong, Bangkok, Tokyo and Taipei. With the supply of housing in the central area of ​​Ho Chi Minh City scarce between 2018-2020 and the need to own high-value properties of the super-rich are growing, this market promises to increase heat in the near future. .

However, Mr. Quang said that the million-dollar housing and luxury and super-luxury apartments in HCM City are quite small, accounting for about 1% of the total supply. Therefore, even if the market share of luxury housing increases in excitement due to the purchasing power of the super rich, this does not affect much on the whole market.

 

Author: Translated by CoPhieuViet.Com

Source: Vnexpress newspaper

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