The establishment and development of the luxury real estate segment in Vietnam seems to always be associated with the fast-growing middle and upper classes. In recent years, this market is heating up thanks to the sharp increase of wealthy Vietnamese.
According to statistics by the UK’s leading real estate consultancy Knight Frank, in 2019, Vietnam had 25,727 millionaires, an increase of 12 per cent compared to 2018, with 458 super-rich people (those having assets worth more than $30 million), an increase of 7 per cent compared to 2018. This is considered the most promising target customer of luxury real estate projects.
|The Icon mansion - luxurious living space amidst green nature |
The upper class in the region’s developed markets has a strong influence on the luxury property market not only within the territory, but also in many foreign markets such as the UK, Australia, and the US. In Vietnam, the same impact can be observed due to many indicators: the growth in the number of luxury real estate projects, construction density, the quantity and quality of amenities, and especially the selling price.
|Not only a focal point for connectivity in East Saigon, The Icon is also highly appreciated by investors for its modern architectural style in harmony with green nature – an important factor that is leading the global real estate market. |
According to Batdongsan.com.vn’s real estate market report, despite the COVID-19 pandemic, in the second quarter of 2020, the level of interest among homebuyers in the high-end segment in the southern growth centre Ho Chi Minh City picked up 38 per cent, while this rate in the affordable segment was only 33 per cent.
Regarding selling prices, according to the Market Highlights report in the third quarter of this year by leading real estate consultancy firm CBRE, the average selling price of the whole market in 2020 is expected to increase by 5 per cent over the same period last year, in which the high-end and luxury segments are forecast to surge by around 3 per cent on-year. Geographically, the East Saigon area will continue to be the investment hot spot with many new projects.
The elite continue to hunt for luxury real estate projects
“I will tell you about the super-rich. They are different from me and you”, American writer F. Scott Fitzgerald once said. For the super-rich, luxury real estate has always been considered the embodiment of wealth, whether it is a 1,000-square-metre mansion in Beverly Hills or a super luxury penthouse in Hong Kong.
According to Knight Frank's data, in the portfolio of the super-rich, real estate occupies the top spot with 27 per cent, followed by stocks (23 per cent), bonds (17 per cent), collectibles (5 per cent), gold and gemstones (3 per cent), and digital currency (1 per cent).
It is clear that real estate is also prioritised by the rich Vietnamese for their investment portfolios. According to the market report for the second quarter by JLL Vietnam, despite the pandemic, the demand for owning and investing in luxury real estate in Hanoi and Ho Chi Minh City is constantly increasing, while new supply of residential real estate in Ho Chi Minh City is scarce. This explains why luxury real estate prices are always on an increasing trend.
|Luxurious living space with high ceilings at The Icon |
The Icon, SwanCity's luxury villa project in East Saigon, is therefore increasingly becoming a hotspot attracting the attention of wealthy buyers and savvy investors. Not only a focal point for connectivity in East Saigon, The Icon is also highly appreciated by investors for its modern architectural style in harmony with green nature – an important factor that is leading the global real estate market.
Besides intangible values created from top-notch facilities such as Clubhouse, millionaire club, and mini golf courses, as well as privileges for residents of SwanCity – an international real estate development brand with a series of megacities in the region including SwanBay and SwanPark in Vietnam with thousands of magnificent villas handed over to customers – continue to affirm SwanCity's position in the luxury real estate market.
William Arthur Ward, author of the Source Stream, once said: "Opportunity is like dawn, if you wait too long, you will miss it." The Icon is an opportunity smart investors cannot miss.