Multi-million dollar houses still sold well in frozen market

October 12, 2011 | 14:59
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Though the real estate market remains gloomy with very few successful transactions reported, high grade apartments worth multi-million dollars still have been sold well in Ho Chi Minh City.

The apartment bought by the famous singer Dam Vinh Hung

The apartments priced at $10,000 per square meter have appeared recently in the HCMC secondary market in recent months. Vincom’s apartments, for example, have been put on sale at the prices of between $8,000 and $13,000 per square metre. With the area of 92-300 square metres for each apartment, the building has no apartment which has the sale price of les than one million dollars.

The prices are obviously higher than the average prices of in the high grade apartment market, which has raised doubts about the salability of the luxurious products at this moment, when people have to fasten their belt and only buy essential goods.

Meanwhile, sellers have been insisting on the high sale prices, saying that the building is located on a very advantageous position, adjacent to the Ho Chi Minh City People’s Committee’s head office, while all the things that serve luxurious life of people are all available at the building.

In fact, there are many other buildings also located on advantageous positions in the central area of Ho Chi Minh City, while the apartments there are being offered at $4,000-$5,000 per square metre only.

The apartments of Lancaster building, located on Le Thanh Ton Street, near the Vincom’s building, are being offered at $4,500 per square meter. Other high grade apartments at the buildings in the same area have the sale prices at no more than $5,000 per square metre.

If only considering the prices per square meter, Vincom’s apartments would be listed as the most expensive products. However, multi-million dollar apartments have become no more strange to Ho Chi Minh City’s dwellers. Especially, multi-million dollar apartments have appeared continuously on the market since 2008, including in the most difficult period of the real estate market.

The investor of Sunrise City, for example, offered to sell the apartments worth up to five million dollars, one of which was sold to the famous pop singer Dam Vinh Hung.

The project’s investor has a series of penthouses priced at $1-$5 million. Meanwhile, Riverside Residence in Phu My Hung urban area has some apartments valued at over one million dollars each.

The investor of Kim Cuong Island, right when kicking off the project, also stated that this is the project of “multi-million dollar apartments”, because 25 per cent of the projects have the sale prices of over $1 million for each, while more expensive ones have the sale prices of up to three million dollars.

The investor has affirmed that the sale has been going very well, even though the prices are sky high. Meanwhile, the prices of the projects have been raised steadily, because the investor believes that the sale prices need to increase in accordance with the construction material price increases.

Commenting about the move by investors of raising the sale prices continuously, experts say that this is a measure taken to maintain the high prestige of the investors and polish the image. However, only big investors with good financial capability can take this move, because in current circumstances, raising the sale prices also means making a statement “I do not need to sell products”.

Despite the sky high prices, real estate experts believe that the luxurious products still have clients – the big guys who have good financial capability. They do not care much about the prices, while they only want the products with the best quality.

Vietnamnet

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