Multi-million dollar houses still selling well in frozen market

Though the real estate market remains gloomy with very few successful transactions reported, high grade apartments worth multi-million dollars still have been selling well in HCM City.

The apartments priced at 10,000 dollars per square meter have appeared recently in the HCM City secondary market in recent months. Vincom’s apartments, for example, have been put on sale at the prices of between 8000 and 13,000 dollars per square meter. With the area of 92-300 square meters for each apartment, the building has no apartment which has the sale price of les than one million dollars.

The prices are obviously higher than the average prices of in the high grade apartment market, which has raised doubts about the salability of the luxurious products at this moment, when people have to fasten their belt and only buy essential goods.

Meanwhile, sellers have been insisting on the high sale prices, saying that the building is located on a very advantageous position, adjacent to the HCM City People’s Committee’s head office, while all the things that serve luxurious life of people are all available at the building.

In fact, there are many other buildings also located on advantageous positions in the central area of HCM City, while the apartments there are being offered at 4000-5000 dollars per square meter only.

The apartments of Lancaster building, located on Le Thanh Ton Street, near the Vincom’s building, are being offered at 4500 dollars per square meter. Other high grade apartments at the buildings in the same area have the sale prices at no more than 5000 dollars per square meter.

If only considering the prices per square meter, Vincom’s apartments would be listed as the most expensive products. However, multi-million dollar apartments have become no more strange to HCM City’s dwellers. Especially, multi-million dollar apartments have appeared continuously on the market since 2008, including in the most difficult period of the real estate market.

The investor of Sunrise City, for example, offered to sell the apartments worth up to five million dollars, one of which was sold to the famous pop singer Dam Vinh Hung.

The project’s investor has a series of penthouses priced at 1-5 million dollars. Meanwhile, Riverside Residence in Phu My Hung urban area has some apartments valued at over one million dollars each.

The investor of Kim Cuong Island, right when kicking off the project, also stated that this is the project of “multi-million dollar apartments”, because 25 percent of the projects have the sale prices of over 1 million dollars for each, while more expensive ones have the sale prices of up to three million dollars.

The investor has affirmed that the sale has been going very well, even though the prices are sky high. Meanwhile, the prices of the projects have been raised steadily, because the investor believes that the sale prices need to increase in accordance with the construction material price increases.

Commenting about the move by investors of raising the sale prices continuously, experts say that this is a measure taken to maintain the high prestige of the investors and polish the image. However, only big investors with good financial capability can take this move, because in current circumstances, raising the sale prices also means making a statement “I do not need to sell products”

Despite the sky high prices, real estate experts believe that the luxurious products still have clients – the big guys who have good financial capability. They do not care much about the prices, while they only want the products with the best quality.

Source: NLD

Tags: Vietnam Property market, Vietnam property sector, vietnam real estate market