According to CBRE, in HCMC, although the middle-class apartment occupies the largest share of total new supply, high-end apartments have the strongest growth of 141%.
The volatility of market indices makes the picture difficult to shape. However, many experts predict the flow of investment is gradually focused on the three-bedroom apartment segment.
Duong Thuy Dung, director of CBRE Vietnam’s Market Survey Division, said that in HCM City, the supply of apartments is currently 211,442 units. Of which, the high-class, luxury segment has 95 projects, accounting for 30% of the total. The remaining is mid-end (37%) and low-end (31%).
Although the proportion of high-end lines is lower, the absorption capacity of the market is quite good. CBRE statistics show that in the second quarter of the premium segment, 3,500 units were offered, with prices rising 2% quarterly and 7% year-on-year, while prices for other products rose only 1-3%. In addition, according to Dung, transactions at CBRE Vietnam show consumer trends are shifting to large, multi-bedroom flats.
The shift to settlement needs
CBRE experts believe that high-end real estate will dominate the market by the end of the year. More strikingly, buying demand is shifting towards the target group. The number of residential buying groups increased by 9% while the number of investment clients dropped by 19% compared to the first half of 2016.
The cause of this change in demand depends in part on the macroeconomic factors and infrastructure being upgraded. Most of the projects are located in convenient locations for transportation, easy to navigate and adjacent to outlying facilities such as commercial centers, hospitals and schools. In addition, the apartments with beautiful views, overlooking the river and equipped with modern facilities such as the park, swimming pool, sports area… are very attractive to many families.
Taking advantage of the market demand, many real estate developers have taken advantage of their infrastructure and financial potential to create a quality supply. For example, Novaland has a large range of high-end apartment projects.
In South Saigon, Novaland attracts large households thanks to the competitive advantage of the project – Sunrise Riverside: There are 3 sides facing river and prominent facilities such as swimming pool over 2,500sm, football pitch, tennis court…), children’s playground. Residents not only inherit fresh air but within a 2-3 km radius of the project is also the system of international education from preschool to university level, chain of commercial and entertainment centers, hospitals, super In particular, Sunrise Riverside is introducing the largest incentive program in the year worth up to 300 VND million.
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