Investment opportunities drive demand for high-end properties in Vietnam: association

High-end properties in Vietnam are gaining increasing popularity among both local and foreign buyers, driven in part by attractive investment opportunities, remarks the Vietnam Association of Realtors (VARS).

The number of luxury real estate projects, including apartments priced from VND80 million ($3,148) per square meter, duplexes, penthouses, and luxury villas, has been on the rise in major cities like Hanoi and Ho Chi Minh City in recent years.

A VARS report showed that luxury homes accounted for 25% of new property supply during the first nine months of this year, posting an absorption rate of 64%.

Many buyers even scrambled to offer higher prices to acquire premium properties situated in prime locations in major cities, the association noted.

Commenting on the high-end real estate market, VARS projected that it could remain a prominent segment in the coming years.

"Vietnam’s wealthy population is expanding rapidly. Between 2013 and 2023, the number of USD millionaires in Vietnam grew at the fastest rate worldwide and is expected to double over the next decade, according to a report by South Africa’s New World Wealth and Switzerland-based Henley & Partners," it explained.

The association emphasized that the growth of the middle and upper classes will continue to drive demand for luxury properties.

Moreover, high-end real estate is considered a reliable savings channel, offering stable returns compared to more volatile investment options. VARS underscored that professional investors are likely to maintain their preference for luxury homes.

The demand for high-end properties in Vietnam is expected to be driven by the growth of premium tourism and increasing global integration. Tourism-focused localities, such as Danang city and the ancient town of Hoi An in the central region, are likely to become highly attractive to both domestic and international investors, VARS stated.

Foreign investment inflows are anticipated to bring a substantial number of foreign experts to Vietnam, further boosting demand for luxury homes in major cities like Hanoi and HCMC. The Housing Law 2023, which facilitates foreign ownership of Vietnamese properties, will also contribute to this trend, it added.