Minutes of the truth from Boss Savills Vietnam: Why does HCMC no longer have apartments priced at 20 million VND / m2, even apartments of 40 million VND / m2 are about to “extinct”?

Minh Hoàng
April 13, 2021
Phút nói thật của Sếp Savills Việt Nam: Vì đâu TP.HCM không còn căn hộ giá 20 triệu đồng/m2, thậm chí căn hộ 40 triệu đồng/m2 cũng sắp "tuyệt chủng"?

– Why is the real estate market in Ho Chi Minh City now only medium and high-end? In particular about the high-end story, the Vietnamese market really does not have a definition that correctly reflects the value. There is an apartment that will sell 35 million VND / m2, about wall tiles, high-class self-style, screaming price 50-70 million VND / m2, Savills senior director frankly shared.

Apartments priced at 20 million / m2 are historical!

– “Real estate commodity prices, especially housing prices are currently unstable, do not reflect the real value of real estate, as well as are incompatible with the ability to pay for the majority of people,” reported on housing and real estate market in the fourth quarter of 2020 and the whole year 2020 of the Ministry of Construction said.

– Frankly sharing at the Seminar on Real Estate Market Prospects 2021, PhD. Su Ngoc Khuong – Senior Director, Investment Division of Savills Vietnam – said: “Apartments priced at VND20 million / m2 belong to history”.

TS. Su Ngoc Khuong – Senior Director, Savills Vietnam Investment Division.

– “Due to the lengthy legal procedures, so in the past, the same position, cost 30 million VND / m2, now up to 50 million VND / m2”.According to common understanding, with the price of 50 million VND / m2, the project will by default become intermediate, the price of 70 – 80 million VND / m2 is called luxury, high class.

– Legality is also one of the reasons why two real estate are placed next to each other, but usually the construction project is always higher than the previous one. The reason is not because the apartments are newer, but because the costs are pushed in more, according to TS. Khuong.

– Talking about the high-end story, Mr. Khuong said that the Vietnamese market really does not have a definition that correctly reflects the value.

“There is an apartment selling an apartment priced at 35 million VND / m2, instead of painting the wall, they clad stone up, the price increased to 40 million VND / m2, even raised to 50-70 million / m2, the room is high level “.

– “An asset is considered high-end or luxury, there are many factors. Among them, there are elements of social utility, needs, and especially lifestyle, expressiveness,” said Khuong Binh. Comment.

– In Ho Chi Minh City, about 15-20 years ago, in District 7, there was a project that only launched 99 units, which Mr. Khuong said “when calling the name of the project, people already know what level they are”.

– “Because it has its own unique values related to being called luxury or super luxury, and people are willing to spend a million dollars to buy an apartment,” said the senior director of Savills.

source: THEO BẢO BẢO

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