Luxury residential developments in Vietnam are attracting wealthy foreign buyers as well as affluent residents of the Asian nation.
For example, apartment prices at a 39-story development in Ho Chi Minh City called The Grand Manhattan are among the highest in Vietnam, starting at $6,000 per square meter for two- and three-bedroom units.
That’s nearly twice the typical price for an upscale apartment in Ho Chi Minh City, but it is substantially less than prices for comparable apartments in Hong Kong, Singapore or Tokyo.
CBRE Group Inc. forecast that the average price for luxury condos in Ho Chi Minh City will increase about 10 percent to $6,000 per square foot by early 2020. Luxury condo prices in the city averaged $5,518 per square meter in 2018, according to CBRE.
At an average annual rate of 6 percent over the last 20 years, the economic growth of Vietnam ranks among the fastest in the world. Economic growth has surged since Vietnam reduced its resistance to foreign investment and relaxed its regulatory grip on the domestic private sector.
Demand for luxury real estate is strong among foreign buyers, but rich citizens of Vietnam dominate the current wave of buyers. The number of Vietnamese citizens with net assets of $30 million or more grew by 320 percent in the 10-year period ended in 2016, according to a report Knight Frank issued in 2017.
Andy Ho, chief investment officer of VinaCapital Group Ltd., told Bloomberg that Asian business owners often invest in real estate when their businesses become successful: “When their country’s wealth grows up, people buy real estate.” [Bloomberg] – Mike Seemuth