Located in Hanoi, a luxury apartment project is marketed for an average price of over VND500 million ($23,000) per sqm, the highest so far in Hanoi. The developer revealed that 70 percent of the apartments have been sold.
Earlier, the project stirred up the real estate market when the developer paid site-clearance compensation of VND1 billion per sqm to obtain this "golden land plot".
A luxury apartment project in HCMC offered a price of $25,000 per sqm on average. Some sources said the management fee at this project is $5-5.5 per sqm/year.
According to CBRE Vietnam, in 2021, the real estate market had the first super-luxury apartment projects with prices of over $12,000 per sqm.
For example, Grand Marina Saigon had an average price of $14,700 per sqm while the Grand Hanoi is offered for $25,000 per sqm on average, and Once Central Saigon (Spirit of Saigon) is predicted to be $25,000 per sqm.
As for villas, sources said that there would be a project related to Elie Saab. There are only 500 such villas in the world, of which 121 are about to be marketed in Vietnam. It is said that construction costs of each villa will be VND100 billion ($4.1 million).
Previously, villas priced at VND50-100 billion were mainly found in Phu My Hung and Thao Dien in HCM City.
There are also villas worth up to VND700 billion each ($31 million), with an average area of 1,000-1,228 sqm.
Super wealthy
According to CBRE, branded real estate development potential in Vietnam is huge because if an increase in very wealthy people.
According to Wealth-X, people with net assets of $1-30 million in Vietnam will increase by 10.1 percent in 2018-2023, adding Vietnam to the top 5 countries for the highest growth of wealthy people.
This has pushed demand for luxury apartments, which has created momentum for the development of the branded real estate market in Vietnam.
Lifestyle-branded property is a type of real estate that is designed, built and managed to the standards of a luxury brand which doesn’t belong to the hotel management sector.
According to Duong Thuy Dung, CEO of CBRE Vietnam, this kind of property will develop strongly in Vietnam.
Kingston Lai, founder and CEO of Asia Bankers Club, said buyers in Hong Kong are familiar with the Vietnamese real estate market. Super-luxury property in Vietnam is more expensive than in some neighboring countries. But for Hong Kongers, Taiwanese and Chinese, $25,000 per sqm is within reach of the wealthy.
Duy Anh