HCMC upscale apartment sales much higher than Hanoi

By Nguyen Ha   October 15, 2018 | 04:26 am PT
HCMC upscale apartment sales much higher than Hanoi
Apartment buildings seen from below in Ho Chi Minh City, Vietnam. Photo by Shutterstock/Thoai
Premium and luxury apartments in HCMC are seeing high absorption rates while those in Hanoi get few takers.

Realtor Vietnam, an association of Vietnamese real estate developers, said in a newly-released report that the absorption rate of premium apartments in Hanoi was 13 percent in the third quarter, while it was six times higher in HCMC at 78 percent.

The gap is even wider in the luxury segment, with the absorption rate in Hanoi at 2 percent and that of HCMC a full 100 percent.

Premium apartments are defined as those which cost VND45-70 million ($1,925-2,995) per square meter, while luxury apartments cost from VND70-200 million ($2,995-8,558).

“This shows that investors have high confidence in the potential for development of HCMC and expect an increasing number of rich Vietnamese and expats to reside there in the future,” the report said.

In another recent report, real estate consultancy Savills Vietnam had said that the high-end apartment market has become vibrant again after a “quiet” period.

It attributed this to Vietnam’s development, higher savings and foreigners being allowed to own 30 percent of an apartment buiding since 2015, Savills said.

The number of luxury apartments in Vietnam is seeing robust growth. In the third quarter this year it reached 1,322 units, 11 times higher than the second quarter, according to Realtor Vietnam.

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