Forget New York City or Hong Kong. The latest hotspot for luxury real estate is Vietnam.
The country of Southeast Asia is experiencing the rapid development of luxury real estate, reports Bloomberg, thanks to the growing economy and laws, making it easier for foreign buyers to buy property in Vietnam.
Vietnam is "where southern China is 10 or 15 years ago," Goodwin Gav, President of Hong Kong Private Capital Gav Capital Partners told Bloomberg. Prices have increased over the past year and a half, but investment in real estate in the country continues to play a good role in the long run, Gav said. Luxury housing prices in Ho Chi Minh have increased by 17% in 2018, says Bloomberg.
The Vietnamese economy is showing strong growth, Al Jazeera says. And in 2015, a law change made it easier for international buyers to get long-term lease and buy property in Vietnam, reports Mansion Global.
Ultra-luxury apartment at a low price
A luxury apartment in the center of Ho Chi Minh City can cost more than $ 5,000 per square meter, or $ 465 per square meter, said Mansion Global Sunni Hang, Assistant Director for International Sales at Savills, Ho Chi Minh City. Compared to other cities, this is an absolute contract.
In Hong Kong, a similar home can easily cost four times more than that, Hoang said.
The average value of primary houses in Hong Kong now stands at $ 4,660 per square meter, according to a special report by Mansion Global, while property in Manhattan costs an average of 1,773 dollars per square meter.
In Feliz en Vista, a luxurious four-tower tower in Ho Chi Minh District District 2, developed by CapitaLand based in Singapore, customers can choose between combinations of garden villas, duplex penthouse and "celestial villas". The facility offers ultra-port facilities including a hot tub hot tub and water slide, outdoor cinema, pedestrian bridge with canopies, fitness center, garden with sky, library, playground, tennis court and parking.
Condoms were launched at prices between $ 232 and $ 290 per square meter. At its peak, it would amount to $ 1.56 million for one of the 500-square-meter penthouse.
More than 99% of units in Feliz en Vista have been sold by the end of 2018, a Business Insider developer said.
And at Grand Manhattan, a 39-story development that will include apartments, hotels and restaurants in Ho Chi Minh District District 1, known as "Saigon Vall Street," apartments inspired by New York are starting at around $ 557 per square foot.
Compare it with the NIC, where even a small penthouse can cost $ 2,143 per square meter, and it's common to see a bid of $ 10 million or more. And in Hong Kong, which has one of the most expensive housing markets in the world, a modest house that many would classify as nokdaun, sold for an incredible $ 446 million.
Not only to foreign buyers
International buyers might be jumping to invest in a real estate in Vietnam, but rich people give them competition.
"We have more and more wealthy Vietnamese, especially entrepreneurs who are looking for places for their money," Neil MacGregor, executive director of Savills Vietnam, told Bloomberg.
Vietnam now has 142 people worth more than $ 30 million, according to a report from 2019 by a global real estate consultant, Knight Frank.