Price up for high-end property

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A report from property market researcher CBRE said there would be many new high-end and luxury projects this year in Hanoi and Ho Chi Minh City.

Nguyen Hoai An, deputy head of the research and consultancy department under CBRE Vietnam, predicted that sales would be good this year in both cities.

"Prestigious investors have developed the projects, which are expected to attract many high-income customers," An said.

In Hanoi, the number of high-end and luxury condos accounted for 30% of the market in the last two years.

Supply in this segment this year is expected to be over 25%, An said, adding that projects in Tay Ho and Ba Dinh districts of Hanoi would be in high demand.

In Ho Chi Minh City, the supply is also predicted to be stable this year.

Duong Thuy Dung, a senior official at CBRE HCM City, said that luxury and high-end projects are attracting customers because of their modern facilities.

Dung said that consumers today are not only concerned about shelter, but also about the surrounding environment of their house or apartment.

He said that prices this year will increase by 4%-7% against last year thanks to the projects’ central location.

Recently, Phu My Hung opened sales for its new high-end project called Phu My Hung Midtown.

Although the price is from VND5 billion (US$$219,000) per condo, it has attracted many customers.

Nearly 100% of condos have been sold, according to the company.

Earlier predictions by experts said the sale of luxury property will be stagnant this year, while low and medium-level segment will strongly develop.

However, the high-end and luxury market as well as the condotel segment have seen good sales and are expected to further develop this year.

Evan Huynh, chairman of the Vietnam National Association of Real Estate Professionals, said that Hanoi, Ho Chi Minh City, Danang and Can Tho had potential.

He said that many projects begun by the Sun Group, Vingroup FLC and CEO Group have met international standards.

Evan said that investors would see success in the property market. 

Pham Huu Thang, deputy chairman of the Vietnam Real Estate Association, said the condotel market has grown because of Vietnam’s integration into the world market and the increasing number of visitors.

He said the supply and sale of condotel projects had increased in Danang and Nha Trang.

The high-end segment as well as condotel and officetel projects in tourism cities have brought more choices for foreigners.

"Along with investors, foreigners and professors working in the country are potential customers," Thang said.