Rebounding market sees high sales in premium properties

The luxury segment is proving incredibly popular with both local and oversees homebuyers Photo: Le Toan

Timo Schmidt, head of international sales and leasing at Savills Vietnam told VIR that “While we are seeing more launches of high-end apartments, particularly in the central business district and exclusive residential neighbourhoods such as Thao Dien, the luxury segment in the Ho Chi Minh City property market is still undersupplied.”

“The true luxury segment is only starting to develop, where we are seeing developers put an emphasis on outstanding location, design, and the uniqueness of a project,” Timo said.

According to him, all luxury projects in Ho Chi Minh City are now located very close to the river and offer magnificent views. Also, developers have implemented a combination of privacy and space interspersed with well-designed and well-constructed buildings to attract luxury home buyers.

There has been plenty of fresh supply in the Grade A segment. Still, the luxury market still only comprises a handful of developments meeting the high standards of premium living. On the other hand, there is significant demand for luxury residences from both Vietnamese and foreign buyers, so take-up rates are very healthy.

Sharing the same view, David Clarkin, joint managing director of Sapphire Vietnam, said that the Vietnamese residential property market began to rebound two years ago, so this firm launched its up-market residential project last year. “Thanks to improved market sentiment, we recorded good absorption rates at our commercial and residential projects,” Clarkin said.

In particular, Sapphire’s Holm Residence in district 2’s Thao Dien area has sold half of the 29 luxury riverfront villas with prices ranging from $1.7 million to $5.3 million”.

According to Clarkin, 2016 will see continued growth in the luxury segment as new supply is matched by continuing demand. The demand is mostly locally driven as buyers have increased confidence in investments as well as in lifestyle options. Foreign buyers will also continue to take advantage of the new laws as Vietnam remains a relatively inexpensive investment option with a strong growth outlook.

According to Savills Vietnam, luxury projects are increasingly attractive to homebuyers. The Nassim, a boutique development by Hongkong Land and SonKim Land, has seen tremendous sales, particularly from foreign investors and house hunters. Nearly half of all transactions to date were made by foreigners or their Vietnamese spouses.

Meanwhile, sales at Diamond Island have picked up traction over the past six months. Developed by Kazakhstan-based Kusto Home, Diamond Island is a luxury project with resort characteristics in Ho Chi Minh City. Once fully finished in 2018, it will have 888 apartments and 20 sky villas spread out over an eight-hectare site.