Real estate boom high end segment in district 1

The real estate market is growing rapidly

According to recent reports Savills Vietnam pointed out that high-end projects are being built massively. Because of the growing demand from urbanization, the decrease in the number of family members and the tendency to live more and more often.

In addition, the impact from the $ 2.5 billion high-speed rail system – Saigon Metro. Expected to put into operation before 2020 with a new urban area is being expanded from the center to the Saigon River.

The most expensive and vibrant real estate sector is District 1. While wealthy families often live in other districts. District 1 is full of factors that they want for full life. From luxury hotels, office buildings to retail spaces.

Consumption of high-end apartments in Ho Chi Minh City is high despite the fact that prices are increasing every year

Duong Thuy Dzung, CBRE Vietnam’s senior director, said that luxury segment now accounts for less than 2% of the total number of flats sold in the city. “The number of high-end apartments in the city now stands at about 4,200. It’s a pretty small market, but it’s a pretty big number and will double in the near future. Ho Chi Minh City will welcome more than 500 luxury apartments by 2020.

Real estate prices also reflect the limited supply of existing land in District 1. CBRE’s Real Estate Market Insights report for the third quarter saw 88% of high-end condos sold and prices It has increased by about 8% over last year.

Explaining the recent development of the high-end real estate segment in Ho Chi Minh City, Dung said: “Because District 1 is the core of the city. Unlike other cities in Vietnam, including Hanoi, the downtown area is still centered around District 1. “

Neil MacGregor, managing director of Savills in Ho Chi Minh City, said: “There is very little commercial activity outside of District 1. So all the main offices, five-star hotels, apartments and The high-end retail space is located in the central district. “

The price will continue to go upward trend

Dung also emphasized that the average selling price for existing properties is currently around VND97.7 million / sqm. But this price is expected to increase rapidly in the future. The average price will not be less than VND 140 million / sqm in 2019.

According to MacGregor, “First-class products are usually in the middle of $ 6-8,000 / sq m and these units will be about 75-95 sq m.” Thus, the average price per unit will range from $450 – 760 thousand.

One of the most anticipated developments in District 1 last time. Vinhomes Golden River is a complex of 60 storeys on the riverside.

Prices of apartments in District 1 average $ 4-5 thousand / sqm. For example, Vingroup’s Vinhomes Golden River

Expected, the project will be completed in 2018. And the luxury apartment here is expected to range from $ 3.5 to $ 6 thousand / sqm, the average area of ​​about 83 – 158 /sqm

Besides, the project is equally expected DIMENSION. managed by The Ascott Group, a pioneer in the development of international quality serviced apartments in Asia.

This project possesses a panoramic view of the city with 102 main apartments (each with 2-4 bedrooms and a warehouse, ranging from 69 to 372sqm). Prices range from $ 5,000 per square meter.

In District 1, all of the high end apartments now have full gymnasiums, rain shelters, saunas, as well as a wine bar and facilities with very good security.

The Golden River project is a model of “city in the city”. There will be an international school (K-12), retail space, restaurants, riverside park, marina, outdoor sports area. Including a green golf course and even a museum of history inside.

The project will be connected directly to the 81-storey Landmark Tower – located at the heart of the multipurpose complex worth over $ 1.5 billion. It is also the tallest skyscraper in Vietnam and ranked 11th in the world when it was completed.

“It is very optimistic,” said MacGregor, in his assessment of the future of District 1 real estate. “There will be a lot of apartments built and sold in the next five years. , attracting all customers from international investors to the rich in Viet nam. “

“Compared to Bangkok, high-end real estate in Ho Chi Minh City has a lot of advantages. And the deals in this city are also more open to customers from Hong Kong or Singapore, “said MacGregor.

The Vinhome Golden River project is also linked to the Landmark 81 tower – the tallest building in Vietnam if it is completed

What are high-end real estate clients?

The majority of District 1 residents are members of commercial communities from all over the world or from Hanoi. “There are a lot of people and it’s almost like entrepreneurs,” MacGregor said.

Ms. Dung added: “The residents of District 1 are usually senior managers or leaders of a transnational corporation. In addition, many foreigners rent high-end apartments for as much as $ 4,000 a month. In addition, District 1 is also a favorite place for celebrities.

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