Vietnam - Luxury real estate market still attracting buyers

While many investors are struggling to seek way-out for their apartment projects, the luxury property segment still has customers who are looking for villas worth several millions of US dollar, the Saigon Economic Times reported.

In Q4 of 2011, Phu My Hung Co explored the reaction of the market by introducing Chateau luxury villa project with 35 independent villas and 12 associated villas that are designed with area of 510-770 square meters each.

After only two months of offering, more than a half of 47 villas at 37-90 billion dong each were ordered. Cheteau project includes total 103 villas, which is expected to be finished (phase 1) by Q1 of 2013.

Given assessment on the move of the market segment, Savills Vietnam market research company that good infrastructure in Phu My Hung urban area was one of attractive factors for buyers despite the real estate market remained gloomy.

The villa and associated housing market in HCM City has total 3,100 units, located in the districts of 2, 7, 9 and Nha Be. The foundation land supply is in the districts of 8, Binh Chang and Thu Duc.

Villa price range in the secondary market is very large, between 4.7 billion dong and 87 billion dong per unit while the price of associated houses is 2-15.5 billion dong/unit.

In the market segment, according to Savills, good product quality, modern infrastructure and environment in addition to investor’s brand name are attractive factors for prospective buyers.

Savills forecasted that there would be 140 villas and associated houses with total area of 8,700 hectares, supplying 60,000 units to the market in next 8 years.

VietBiz24

Business & Investment Opportunities

YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.