While high-end housing prices in major cities in the world have levelled off, the price of this segment in Vietnam still maintains attraction. Especially international visitors, showing the investment potential of the Vietnamese market.
In the second half of 2018, the growth rate of high-end apartment prices has decreased significantly in the leading markets in the world. The average annual increase is recorded as the lowest since the global economic crisis. Growth in 2018 is lower than the 3.3% increase of 2017. The price index rose only 2.3% in 2018, recording a slower pace in the second half, only 0.4%.
According to a leading real estate management unit, when the growth rate slows, it is expected that buyers will seek stability in long-term property ownership and use. They will choose cities where wealthy individuals around the world want to live and work. This is the factor that will determine the value of high-class housing in the coming time.
In major markets around the world, such as New York, house prices are falling, the average luxury apartment price is 2,610 USD / ft2 equivalent to 28,094 USD / m2. In London, this price is about 1,880 USD / ft2 (equivalent to 20,236 USD / m2). Brexit made the London market slow down while increasing demand for housing in the neighboring city. Where housing prices are often lower and have more growth potential.
Meanwhile, in the Asian market, Hong Kong has consistently held the highest position in the high-end housing price index for the past 10 years. The average luxury apartment value is 4,660 USD / ft2 (equivalent to 50,160 USD / m2), 50% higher than Tokyo – the second most expensive market in Asia. In Shanghai, the fifth most expensive market, prices fell 1.7% due to tighter lending targets, cooling policies and tax increases.
In the Vietnamese market, apartment prices in Ho Chi Minh City and Hanoi are generally lower than in neighboring markets, despite growth in HCMC. HCM is higher when compared to these markets.
According to the survey, the price of apartments in the central area of HCMC. Ho Chi Minh City is holding an average of about 5,500 – 6,500 USD / m2, a fraction of that of Hong Kong. Since the housing ownership policy for foreigners came into effect in 2015, the demand for investment in real estate in Vietnam has increased significantly. Many investors stated that this is an attractive investment channel when leasing profit exceeds 5%.
It is a long way to make Vietnam real estate market reach the peak such as Hong Kong and Singapore. but with strong economic growth, middle-class boom and affordable prices, according to Savills’s forecast, Vietnam will continue to move forward, becoming Asia’s next tiger. The emergence of more long-term investment opportunities in the high-end housing segment, especially when economic indicators still outperform, buyers will fully benefit from price increases. investment value.