Hanoi’s tycoons more prodigal than Saigon’s while spending money on villas

Billionaires in Hanoi prove to be more prodigal than the ones in HCM City, especially in the real estate sector: Hanoians are ready to spend millions of dollars to possess luxurious villas.

The billionaires in HCM City prove to be the first Vietnamese persons who own high end villas worth up to hundreds of thousands of dollars. However, Hanoi’s tycoons are believed to spend more money on properties: they own the super-expensive villas worth up to millions of dollars.

A lot of high end villas have been launched into the market over the last three years, and analysts have talked about the “boom” of the luxury villa market. The “Galaticos Living” in Da Lat City, with the sale price of three million dollars (60 billion dong) for each villa, or Hyatt Regency and Ocean Villas in the sea city of Da Nang, with the sale prices of two million dollars for each (50 billion dong) have been well known as the super-expensive and super-luxurious products.

In the past, the luxurious villas mainly target foreign buyers. However, nowadays, the owners of the villas are mostly Vietnamese. According to Savills Vietnam, a real estate service provider, 80 percent of the clients are from Hanoi, while only 13 percent of clients are from HCM City. The other seven percent are Viet Kieu (overseas Vietnamese) and the Vietnamese from other provinces and cities.

While Saigonese tend to choose the villas worth 300-800,000 dollars at the resorts in Vung Tau and Binh Thuan, Hanoians choose the resort villas worth millions of dollars.

Real estate price in Hanoi double that in HCM City

Hanoians are really more generous than Saigonese because they accept the real estate prices which are double that in HCM City, and much higher than the prices in many countries in the world.

In Hanoi, a 800 square meter villa in Nam Thang Long Ciputra new urban area, which is 9 kilometers far from the central area, is priced at 30-40 billion dong.

Meanwhile, in Australia, a villa with the same area, which is 9 kilometers far from the central area of Sydney, is priced at 800-900,000 Australian dollars, or 20 billion dong.

Houses, apartments and land in HCM City are all cheaper than in Hanoi. Pham Thanh Hung, Deputy General Director of Cen Group, said that the houses for low income earners and other specific subjects (sold at preferential prices) are even more expensive than commercial houses in HCM City.

Also according to Cen Group, the houses priced at 10-11 million dong are numerous in HCM City, while such a low prices do not exist in Hanoi.

In HCM City, there are not many real estate projects with sky high prices. Meanwhile, in Hanoi, the apartments priced at 30 million dong per square meters are popular.

In Hanoi, the apartments in Van Phu new urban area can be sold at 60-62 million dong per square meter, while the houses on Le Trong Tan street at 120-130 million dong per square meters.

Meanwhile, in HCM City, the prices are much lower for the houses on the similarly advantageous positions. The apartment prices are just between 30-40 million dong per square meter.

Why is real estate in Hanoi expensive?

Explaining the higher prices in Hanoi, Vu Cuong Quyet, General Director of Dat Xanh Mien Bac, a subsidiary of Dat Xanh Group, said that due to the lack of information, Hanoians always have to buy products through intermediaries instead of buying directly from the suppliers.

“The prices in Hanoi are higher than the actual values because products go through too many brokers,” he said.

Pham Thanh Hung, Deputy General Director of Cen Group, also said that the sale prices in Hanoi are higher because of the high underground fee of the real estate projects.

Source: VTC

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