What are the commonalities in value creation of luxury condominium projects in the Central Business District (CBD) of Bangkok, Singapore and Ho Chi Minh City other than a super prime location besides architectural uniqueness, sophisticated interior design and premium amenities? Historically, the market had shown property prices of many luxury condominium projects in Central Bangkok like Sukhumvit area have sharply increased, with starting prices for many projects at US$8,000 per square meter, while the price for a 4 bed-room condominium in the CBD of Singapore is about US$26,000 per square meter. Therefore, what is the case in Ho Chi Minh City?
CBD – where an inch of land is considered an ounce of diamond
In major cities around the world, the CBD is considered to be the concentration of cultural, entertainment and commercial activities of the city with iconic architectures, skyscrapers, headquarters of MNCs, modern infrastructure and vibrant lifestyle. It’s why these areas are often planned for cultural & commercial purposes, not residential.
Therefore, condominium projects in the CBD are always sought after by savvy investors thanks to their increasing value over time. As an example, the average price at The Diplomat 39 – a 31 level Luxury High-rise Condominium located on Sukhumvit Soi 39, Bangkok’s most luxurious street – is US$10,000 per square meter, compared to US$8,700 per square meter of the same period last year, i.e, an increase of 15%; while the average price at The Orchard Residences in Singapore CBD is around US$26,000 per square meter, compared to US$24,000 per square meter of the same period last year, i.e. an increase of 8%. Historically, the market had shown the average price of condominiums in Bangkok’s CBD rose 48% between 2010-2019, while that in Singapore CBD grew 38%. Thereafter, the stability of condominium prices reinforces the perception of these prime location properties as safe haven assets in times of crisis and economic uncertainty, like right now.
Similar to Bangkok and Singapore, Ho Chi Minh City advocates restricted licensing of new residential projects in the CBD in order to create more spaces for commercial, financial, tourism and administrative functions. Out of five subzones in Ho Chi Minh City, the first zone is planned as the core area of the CBD with commercial, hospitality, travel and public administrative purposes. Inevitability, the CBD area will experience scarcity supply of luxury real estate properties, while the increasing demand for luxury homes continues. The Marq, the luxury condominium project located within this zone, will certainly attract vast demand.
What is the ideal choice for the savvy investors in Ho Chi Minh City?
According to CBRE’s market research report, despite the low absorption rate of the HCMC luxury property in the 3rd quarter of 2020 amid Covid-19, the price continues to increase at a growth rate of 18% due to its limited supply, i.e. increased by 1% y-o-y compared to the Q4 of 2019, reaching an average of US$6,371 per square meter – all showing a new appearance of this segment, especially in the CBD. Moreover, the rental yield rate in HCMC remains attractive at 6-8% per annum. By comparison, the luxury condominium’s average sale price in Ho Chi Minh City is still significantly lower than other South Asia cities such as Bangkok, Kuala Lumpur, Singapore and Hong Kong with the average sale price ranging from US$6,000 – 11,000 per square meter.
The Marq is luring savvy investors thanks to its prime development location due to close proximity to surrounding amenities, as well as the modern architectural style expressed through smart design but still adheres to the orientation of creating a green living environment in the heart of the city, exquisite interior design and premium facilities. This testament is shown with The Marq being the proud recipient of five awards including three prestigious 5-star awards at Vietnam Asia-Pacific Property Awards 2020-2021: Apartment/Condominium, Residential High-Rise Architecture, Residential High-Rise Development, Mixed Use Interior and Residential Interior Show Home.
Jointly developed by Hongkong Land and An Khang, The Marq is a luxury residential high-rise building, located in the heart of District 1, HCMC. This development will provide 515 opulent residences comprising one- to four-bedroom condominiums offering stunning city views and a true luxury lifestyle for discerning investors.
For more information, please visit www.themarq.com.vn or call 0978 488 988 or contact our official agencies including: Asia Bankers Club, Viet A Land, Savills, CBRE, Rever, Seareal Dong Nam, SouthernLand Vietnam, Gia Phat Investment and Huttons Vietnam.
