Upscale HCMC apartment project scales a new pricing high

An apartment project with a record-high price tag of $18,000 per square meter has recently been launched in HCMC, showcasing increasing demand in the luxury segment.

Vietnam, HCMC, luxury

The price tag is 2.6 times the luxury segment average in the city at $6,900 per square meter, according to data from real estate consultancy CBRE. Most real estate consultancies define a luxury apartment as one that is priced $4,000 or higher.

The project is located on Ton Duc Thang Road that runs alongside the Saigon River in District 1. Its apartment prices range from VND18-24 billion ($780,000-1 million) per unit, with areas depending on acreages from 40-110 square meters.

The project has low construction density with trees covering 60 percent of the total area. Each floor has 10 apartments and eight elevators.

Data from real estate consultancy Savills shows that Vietnam is among the top 10 fastest growing branded residences real estate market in the world, alongside Malaysia, the U.K. and Australia. Branded residences are products created by a real estate developer with a well-known manager.

Matthew Powell, director of Savills Hanoi, said that in Vietnam, many buyers looking for property in the luxury segment with the highest quality for either rental or residence purposes.

The boom in this type of apartment is changing the structure of the real estate market. The luxury segment accounted for 39 percent of total apartment supply in HCMC as of the end March, exceeding the 20 percent of the high-end segment, according to CBRE.

However, observers are concerned about the imbalance this implies. Nguyen Loc Hanh, CEO of HCMC-based Asia Gem Real Estate Investment, said that 39 percent is too large a ratio for the luxury segment and it does not represent a sustainable real estate market.

Experts have been advising for the last several decades that the ratio is kept at just 1-2 percent, he noted, adding the the current ratio shows developers are only aiming at very rich buyers.

Other industry insiders say that there is still a lot of ambiguity on the criteria for the luxury segment, and that it is too early to identify whether the record-high prices correctly reflect the value of the asset.

News Related


Finding a way for social enterprises in the new situation

Thao Thi Sung (first from left), head of the Cooperative for Lanh (flax) Planting and Brocade Product Development in Ta Phin village, Sa Pa town, Lao Cai province NDO – Operating for many… Read more »

Vietnam eyes 600 billion USD in export turnover in 2021

Illustrative image (Photo: Internet) Hanoi (VNA) – Vietnam posted solid export performance in the first quarter of 2021, and at such a growth speed, its export turnover is likely to hit 600 billion… Read more »

Experts review pros of International Financial Center

Several viewpoints were shared by experts on this issue at a seminar titled “Reshaping Global Finance and Vietnam’s Strategy”, which was held in coordination with Ho Chi Minh City University of Economics (UEH)… Read more »

Enterprises start increasing waste recycling

Collecting rice husks for the production of rice husk biochar at Mai Anh Dong Thap Company. (Photo: SGGP) Many practical benefits If wastes, by-products, and defective products during the production process are not… Read more »

Vietnam among top three buying geographies of US firms

Illustrative image (Photo: VNA) Hanoi (VNA) – A new report finds that 43 percent of US-based respondents cited Vietnam among their top three buying geographies as of early 2021, doubled from 2019, according… Read more »

Vietnam synthetic fiber exports escape India anti-dumping duties

The trade remedies authority of Vietnam received a notice to the effect from the Indian Ministry of Finance Thursday. India also decided not to impose anti-dumping duties on synthetic staple fiber originating or… Read more »

Rice exports cross $1 bln on higher prices

The volume of rice exports during the period dropped 11 percent year-on-year to 1.9 million tons, according to the Ministry of Industry and Trade. However, as the average export price rose 13.4 percent… Read more »

VN-Index slips after five gaining sessions

The index fluctuated in the morning and stayed in the red in the afternoon before closing nearly 6 points down. Trading value on the Ho Chi Minh Stock Exchange (HoSE), on which the… Read more »

No cartel pushing up steel prices: ministry

Steel prices have risen by 40-50 percent since the end of 2020, according to the Vietnam Steel Association (VSA), troubling construction companies. The Vietnam Association of Construction Contractors asked the Government Office to… Read more »

HCMC new apartment prices rise, secondary market treads water

Real estate consulting firm CBRE said that the average price of new apartments was $2,219 per square meter. Colliers International, another consultancy, said in the eastern part prices have risen 7-9 percent year-on-year… Read more »

Predominance of luxury housing sparks doubts about sustainability

The luxury segment accounted for 39 percent of total apartment supply in HCMC in the first quarter, and the high-end segment for 20 percent, according to data from real estate consultancy CBRE. Even… Read more »

Techcombank, Vietcombank give VN-Index a boost

The index was in the green throughout the day, peaking at 1,265 points in the afternoon before closing with a 14-point gain. Trading value on the Ho Chi Minh Stock Exchange (HoSE), on… Read more »

Disputes keep pace with e-commerce growth

The e-commerce market grew by 16 percent to $14 billion in 2020, and is expected to be worth $52 billion by 2025, according to a report by Google. The number of disputes is… Read more »

Vietnam replaces China as largest furniture exporter to US

Vietnam exported $7.4 billion worth of furniture to the U.S. last year, compared to China’s $7.33 billion, according to data from U.S. magazine Furniture Today. This marked a 31 percent year-on-year surge for… Read more »

Resort real estate sees recovery

The uptake was 25 percent (196 villas sold), almost twice the number from the previous quarter, real estate firm DKRA Vietnam said. The supply increased mainly due to a few large projects in… Read more »

Land ‘fever’ starts to break, prices expected to move sideways

According to a recent survey by VnExpress, land prices in five districts of Binh Chanh, Nha Be, Hoc Mon, Cu Chi, and Can Gio in HCMC, have been moving sideways for the last… Read more »

China cryptocurrency craze drives hard drive shortage in Vietnam

Customers and market observers say local people have been buying large capacity hard drives in bulk and reselling them to the Chinese amidst a new mining craze for the Chia cryptocurrency in China.… Read more »

Minister vows to prioritize affordable housing

Speaking at a recent meeting, he said he would change regulations to promote investment in this segment, especially in social housing. The affordable segment, defined as costing less than VND25 million ($1,092) per… Read more »

HCMC luxury apartment developers race to claim record high prices

An artist’s impression of a luxury apartment project in District 1, Ho Chi Minh City. Photo courtesy of Keenland. The initial price of a luxury apartment project in District 1’s Da Kao Ward,… Read more »

High costs a drag on domestic logistics industry

Dao Trong Khoa, vice president of the Vietnam Logistics Business Association (VLBA), said the cost of logistics in Vietnam is equivalent to 20 percent of GDP while the global average is around 11… Read more »

Railroad popularity a thing of the past

Some 10.4 million people traveled by trains in 1990, accounting for 3 percent of the total number of commuters using all modes of transport. Thirty years later, the number plummeted to 4.7 million… Read more »

Construction contractors seek investigation into steel price rise

Prices have risen by 30-40 percent since the end of 2020, according to the Vietnam Steel Association (VSA). Chairman of the contractors association Nguyen Quoc Hiep said: “Contractors are facing difficulties because most… Read more »

Construction contractors association seeks investigation into steel price rise

Prices have risen by 30-40 percent since the end of 2020, according to the Vietnam Steel Association (VSA). Chairman of the contractors association Nguyen Quoc Hiep said: “Contractors are facing difficulties because most… Read more »

Vietnam can become renewable energy superpower

Solar power panels at the BIM Solar Power Complex in Ninh Thuan Province, central Vietnam. Photo by VnExpress/Quynh Tran. Weert Börner, deputy ambassador of the Federal Republic of Germany to Vietnam, said Friday… Read more »

IT, finance companies hire managers in droves

Employees work at KSM Solution, a technology company in Tan Binh District, Ho Chi Minh City. Photo courtesy of KSM Solution. Recruitment company Navigos Group said in a note that demand for managers… Read more »

Revival of textile, footwear industries hampered by worker shortage

Many employees have also quit their jobs and turned to other vocations like online selling, industry insiders say. Workers in a textile factory in Tan Do Industrial Park in the southern province of… Read more »

Global firms dominate Vietnam electronics exports

A worker inspects a printer circuit board at a factory in Bac Ninh Province. Photo by Reuters. In the first quarter this year, exports of phones and components were worth $14.1 billion, 99… Read more »

Stock brokerage profits skyrocket

Leading brokerage SSI Securities Corporation saw its profit increase 28 times year-on-year to VND426.9 billion ($18.5 million). Its revenues rose 57 percent to VND1.47 trillion ($63.8 million). VNDirect recorded an eight-fold jump in… Read more »

​Industrial rents rise as manufacturing shifts from China

The average rent rose to US$111 per square meter, real estate consultancy Jones Lang LaSalle reported. Ho Chi Minh City rents, the highest in the country, rose to $165, according to another real… Read more »

Authorities give ​social housing the cold shoulder

Another 263 projects with 215,800 houses are currently under development. The government had set a target of 12.5 million square meters of social housing in 2016-20, but only managed 5.2 million square meters… Read more »

HCMC landed properties find few takers

Low supply was another factor, with only 470 landed properties placed on sale, the lowest in the last five years and representing a 50 percent fall from the previous quarter and 59 percent… Read more »

Pandemic grounds 39 Vietnam aircraft

Eighteen of the grounded aircraft belonged to national flag carrier Vietnam Airlines, 14 to budget carrier Vietjet, four to Pacific Airlines and three to Bamboo Airways, according to the Civil Aviation Authority of… Read more »

Land prices rise, but fewer transactions

The Ministry of Construction said the number of land purchase transactions was nearly 36,000 in the fourth quarter of 2020, and it fell to around 25,000 last quarter. Deputy Minister of Construction Nguyen… Read more »

Used automobile import quotas fail to attract interest

Under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a certain number of used cars can be imported annually, and the Ministry of Industry and Trade auctions the right to import them. This… Read more »

Pall of gloom remains over HCMC hospitality industry

Five-star hotels in Dong Khoi Street in HCMC, June 2020. Photo by VnExpress/Nguyen Nam. The average room rate was $62 per night, down 20 percent year-on-year, according to a recent report by real… Read more »

Petrovietnam Power to build $1.5 bln LNG plant

The 1,500-megawatt Ca Mau Power Plant 3 is set to begin operation in 2026 when it will produce nine billion kilowatt-hours of electricity a year and employs 2,000 locals. PV Power will require… Read more »

Contractors suffer as steel prices surge

Hai, an engineer with a construction company in Hanoi, has changed his cost estimates for a project three times in the past week after steel prices began skyrocketing since earlier this month. “Our… Read more »

Vietnam Railways pleads for government funding as staff remain unpaid

It reminded the government that it was supposed to receive VND2.8 trillion ($121.3 million) at the beginning of this year, but has not, forcing it to pay minimum compensation to staff. Vu Anh… Read more »

​Vietnam eyes $4 bln in shrimp exports

It also targets output of 930,000 tons and having 740,000 hectares of shrimp farms, said Tran Dinh Luan, director of the Directorate of Fisheries, said at the VietShrimp Aquaculture International Fair in Can… Read more »

​Hanoi apartment prices up 7 pct

A view of Cau Giay District in Hanoi. Photo by Shutterstock/TuananhVu. With new projects coming up in prime locations during the quarter, prices in the high-end and affordable segments rose by 9 percent… Read more »

​Experts fear HCMC luxury apartment market building into bubble

The high-end segment accounted for another 20 percent, real estate consultancy CBRE Vietnam said in a note. The mid-priced segment, which used to account for 55-60 percent of supply in the past, accounted… Read more »

Affordable housing on the verge of extinction

Apartments in the eastern part of Ho Chi Minh City. Photo by VnExpress/Quynh Tran. For instance, grade B and C apartments used to account for 78 percent of supply in HCMC in 2017,… Read more »

Con Dao Airport could get lit up for nocturnal operations

The aim is to allow the increasingly popular tourist destination to receive and see off visitors at night. According to the Civil Aviation Authority of Vietnam (CAAV), the frequency of flights to and… Read more »

Ministry wants taxes slashed for transport companies

A bus in Hanoi with only two passengers, January 2021. Photo by VnExpress/Anh Duy. It wants the 30 percent cut in road maintenance fee, in place until June 30, to continue through 2021,… Read more »

Government mulls allowing companies to buy renewable power directly from producers

The Direct Power Purchase Agreements (DPPA) policy will allow manufacturing companies with minimum 22-kilovolts power lines to negotiate and buy from solar and wind power plants. In the first three years, when the… Read more »

Why banks’ profits surged?

Of the 10 or so lenders who have released their earnings figures for the first quarter, most have seen profits rise by over 50 percent with some even doubling or tripling them. VietinBank’s… Read more »

Pandemic fails to dampen HCMC apartment market

Apartments in HCMC’s Thu Duc City. Photo by VnExpress/Quynh Tran. The average price was $2,468 per square meter, real estate consultancy Jones Lang LaSalle reported. The pandemic outbreak at the end of January… Read more »

Vietnam’s first smart electric bus service launched

In the first phase of the service, the buses will only run in the Vinhomes Ocean Park urban area in Gia Lam District. The company’s is waiting for the completion of procedures to… Read more »

Hanoi hosts Vietnam’s first smart electric bus service

In the first phase of the service, the buses will only run in the Vinhomes Ocean Park urban area in Gia Lam District. The company’s is waiting for the completion of procedures to… Read more »

Floor prices for air tickets will hurt passengers: experts

The floor price will exclusively create advantages for Vietnam Airlines, eliminating competition and forcing passengers to select the national flag carrier in the mid- and high-end segments, said aviation expert Nguyen Thien Tong.… Read more »