High-end Real Estate “Counter-attack” After Quiet Time

After a short time “quiet,” a new study on the real estate price index TP. HCM by Savills Vietnam has announced that, in the near future, the segment of high-end real estate will have a “counterattack” and enter the fierce competition for customers.

Different from the first quarter of last year, the apartment market in HCM in the first quarter / 2017 seems pretty quiet. The new apartments launched in the luxury segment decreased significantly 72% over the previous quarter. However, the market’s move shows that the high-end segment is “moving”, preparing to enter a new “war”.

In fact, the market has witnessed the emergence of new supply sources in the high-end segment. For example, the Millennium project at Ben Van Don Street, District 4 of Phat Dat Real Estate Development Joint Stock Company. The project has a total area of 7,302.6 sqm, including twin towers with 34 floors and 3 basements.

Earlier this year, Kepple Vietnam also launched the next two towers of The View – Riviera Point in District 7 with more than 600 units. In addition, the company also launched more than 1,000 apartments priced at 3 billion per unit or more at two projects in District 2 is Palm City and the Thu Thiem Empire City.

Perspective of Green Valley apartment project in Phu My Hung, HCMC

Outstanding among the investors that supply high-end real estate to the market is the Novaland Group. This is the unit that is said to provide the most high-end apartments for the HCMC market in the first half of 2017. The projects that Novaland put into the market mainly in Tan Binh district with 7 projects on Pho Quang Street and Hong Ha Street.

In addition, on Nguyen Van Troi, Phu Nhuan District, Novaland also has two projects. The projects in District 7, District 2 are also continuously being opened in Novaland to sell the next phase, providing more than 2,000 apartments, selling price from 2.5 billion / unit or more.

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Besides the new projects, good news for the real estate market that Ho Chi Minh City is coming time, many projects will be resurrected project to provide a market supply a considerable supply. Typically, this is the Kenton Node project of Tai Nguyen Construction – Trading and Manufacturing Company.

According to informed information, the project is located at Nguyen Van Linh – Nguyen Huu Tho intersection, District 7, consisting of three subdivisions Sky Villa, Residence and Plaza with 9 buildings and the structure of the original apartment is 1640 senior household. In addition, there is Lacasa project, District 7 with 6 hectares with 2,000 apartments, including office-tel in the mid-high segment was acquired by An Gia from Van Phat Hung.

At the same time, Dat Xanh Group announced the Lux Garden apartment project, after successfully distributing the Lux City project in 2016. With a 500-unit high-end condominium designed in combination with residential and aerial gardens, this will be the source of supply for residents who choose to live or invest in Saigon South.

In addition, other high-end projects are also launching the next phase and planning to welcome residents in the future such as Empire City, Palm Heights, Glenwood and Maison…

It is predicted that, in the coming time, the segment of high-end real estate will enter the fierce competition.

Not to mention, from the end of 2015, a series of real estate giants invested capital in the area Sala – Masteri – Tan Cang – Ba Son (HCMC). And in the near future, it is estimated that there are about 30,000 apartments priced from over 2 billion VND to 10 billion VND / unit deployed in this area.

According to Savills Vietnam, while the liquidity is falling sharply, the supply of luxury apartment segment continues to be great. Expectedly, from quarter II / 2017 to 2019, HCMC apartment market will receive an additional 62,200 apartments, with high-end apartments are not small.

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Experts said that over the past time, the segment of high-end real estate seems quiet, partly due to the ground fever that influx of investors rushed to the suburbs. Moreover, the new regulations that allow foreigners to buy a house in Vietnam have made the demand for high-end rental housing dropped.

According to CBRE analysis, the high-end segment declined in part because of the impact of market realities, partly because investors re-examined their projects and strategies. However, this unit forecasts, with the plans are cherished by many businesses, the possibility of the number of offers will return to normal in the next quarter.

Experts also note that the luxury segment, though starting relatively slowly in the first quarter of 2017, however, offers prices in the luxury segment is expected to increase significantly due to some high-quality projects are given for the next three-quarters.

With the large supply as above, certainly the segment of high-end real estate will enter the fierce competition in the future. However, only those projects that really qualify as owners prove their financial prestige and potential new customers can make money down.

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