VietNamNet Bridge - The number of high-end property transactions in the first half of 2015 alone was equal to that of the entire year of 2014.

 

The number of high-end property transactions in the first half of 2015 alone was equal to that of the entire year of 2014

A recent report from the Ministry of Construction (MoC) painted Vietnam’s real estate sector in a positive light in 2015, especially regarding property inventory and the disbursement of the government’s VND30 trillion ($1.4 billion) housing credit support package, according to Vietnam Economic Times.

However, some projects have been selling well, while others remain unattractive.

A report from Cushman & Wakefield shows that the demand for high-end property has increased rapidly with the number of successful transactions in the first half of 2015 double that of 2012 and 2013, and equal to the whole year of 2014.

In HCM City, a lot of high-end property projects have been marketed, including Sunrise CityView, Masteri Thao Dien, The Sun Avenue, Promenade Tower and the second phase of City Garden high-end apartment project.

Some projects have been selling well, while others remain unattractive.

It is expected that supply would increase continuously from now to 2017. With 90 existing projects to be implemented in the future, the market would receive 60,000 more apartments, mostly high-end products.

However, observers noted big differences in the sales of high-end projects, depending on the projects’ positions.

The Q3 2015 report of Savills Vietnam showed that 53 percent of transactions in HCM City were in districts 2, 7 and Binh Thanh. Meanwhile, the remaining 47 percent were in the other 21 districts. 

Meanwhile, its Q4 report, showed the number of successful transactions in the quarter increased sharply by 300 percent, accounting for 28 percent of total transactions. High-end real estate was understood as products with the selling price of $300,000 and more.

District 9 was the locality which saw villas and houses selling best. This was attributed to the developed infrastructure system in the locality and the good urban programming.

They commented that investors are choosier now after the hot market suddenly turned cold some years ago. They now want to products with promising sustainable development value.

Investors now not only consider quality and price, but also positions, living environment and design.

The observers noted that very few projects can satisfy the high requirements. In general, buyers prefer apartments in central areas of the city. However, the land there is very expensive, while there is not enough land to ensure ‘large green living environments’ for owners.

Can Van Luc, a renowned economist, said the market would continue warming up, especially the high-end market segment.

According to Savills Vietnam, 7,700 apartments were sold in the fourth quarter of 2015, a 47 percent increase over the quarter before.



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