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Whether or not the problem of excess of a luxury apartment?
The real estate market of HCMC in the third quarter recorded an increase in the supply of luxury apartments and luxury real estate. Only in July, a lot of luxury projects are launched, including the luxury product line with 1,000 apartments in the Aqua and 1,000 apartments in the Luxury 6 (Vinhome Golden River Project) of VinGroup – the pioneer in the luxury market segment. Next, is HaDo Centrosa Garden complex is located at 200, Ba Thang Hai Street, Ward 12, District 10, Ho Chi Minh City. It is located in the center of District 10 with 8 blocks of 30 stories ( includes 2,187 luxury apartments) and many townhouses functional areas adjacent green campus. And recently, the Diamond Island project phase 2 by Kusto Home Corporation has officially opened two Hawaii towers with 177 luxury apartments. There are also many other luxury projects such as Millennium, luxury projects of the Novaland Group are also preparing to hit the market and a series of luxury apartments are massively sold out last year. The above luxury apartments are sold in thousands of dollars per square meter.
Information on the very large supply of luxury apartments in the market today is real and it will make real estate investors more competitive pressure. However, according to real estate investors, the source of demand is not too concerned. Investors rushed into the luxury market segment as a consequence as demand for luxury apartments returned.
Assessing the current supply, experts from Savills said: There is no basis to worry about oversupply. Currently, there are not many luxury products, only about 15% of the total supply of the market. Meanwhile, demand for this product line is quite stable, the market has more potential to exploit at the right time.
Vietnamese Savills said: Unlike in the past, nowadays demand for luxury segment is no longer temporarily speculative, but most of the people with real demand and long-term investors. Luxury projects are more comprehensive, from design, permeability to an interior, living utilities can be compared to products of the same type in the countries in the region. The advantage of this product is the favorable location, meeting the needs of elites and subjects such as specialists, senior leaders in companies, foreign corporations. Potential rental of this segment is also plentiful as rental price is always at the highest level and rental demand is still great. In addition, the process of integration of TPP and the trend of globalization happening rapidly led to the continuous increase in the number of foreigners coming to Vietnam to live and work in recent years, especially in HCMC. This potential customer will push the demand of looking for quality housing in the downtown area.
In fact, of the 177 luxury apartments of the Diamond Island project phase 2 (Kusto Home Group), there were more than 60 apartments successfully traded in the launching ceremony, with the starting price of US $2,500 USD/m2. The Novaland Group is also very calm to say that whether the supply exceeds demand or not will follow the rules of the market, it will automatically regulate. If there are many projects, the price is down, then fewer products will increase price and more new projects will come out. In addition, housing demand is still very large, especially, through the recent crisis (200, customers and investors have a very deep experience so they also have been more careful in choosing the apartment for living and investment). In addition, project developers are more professional, the financial situation is more secure, so the issue of oversupply is not an urgent matter. If the economy develops synchronously, the state controls regulate by tax policies, interest rates … the market will surely develop sustainably.
Prices for luxury apartments will decrease?
According to the law of supply and demand, prices of luxury apartments may decrease due to supply greater than the needs of the people. It is unavoidable in the future for the luxury market segment if there is no regulation. Although real estate developers still believe in their luxury apartment, there are signs that many developers start lowering their prices to sell faster at the end of the year. This is probably the opportunity for buyers to own luxury apartments more easily.
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