There continues to be a market for luxury residential products in Vietnam in 2019 thanks to the participation of more foreign investors, tolerance of foreign property ownership, and increasing number of domestic high net worth individuals (HNWIs), an executive from Savills Vietnam has said.
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These global players will bring along large capital flows and introduce new concepts of prime property to Vietnam residential market. Indeed, international hotel groups have brought to Vietnam branded residence, an emerging model of luxury lifestyle products recently.
Transnational groups with well-known hotel brands provide high quality services with lower prices from the same products of that brand in other countries, thus attracting more customers to. The movement, therefore, creates more opportunities in the hospitality segment and makes this kind of real estate potential for investors.
Secondly, another factor facilitating cross-border demand for prime property from regional peer countries is the enforcement of amended housing law which allowed foreign property ownership in Vietnam, Matthew Powell, director Savills Hanoi said.
Thanks to this policy since July 2015, many higher end projects have quickly sold its quota to foreigners, mostly those from China, Taiwan, Hong Kong, and South Korea, Mr. Powell said, adding that foreign demand, fuelled by the growth of high-net-worth individuals (HNWIs) in Asian countries, is expected to expand further.
Number of HNWIs in Vietnam. Photo: Savills Vietnam
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Fourthly, Powell added another factor that helps guiding homebuyers’ taste and choice is technology applied in the real estate, especially prime property. He explained that as the price range is uncapped, there is more room for integrating new technologies in residential products from designing to marketing to operation and management to adapt to human need.
In Vietnam, the announcement of Smart City project in Hanoi’s outlying district of Dong Anh in April 2018 sent the residential market to a smart frenzy. Smart features have become a desirable quality in housing products, and a critical quality in luxury sector as developers want them in their products and buyers want them in their homes, the executive emphasized.
