High-end properties in Vietnam attract buyers

High-end properties in Vietnam attract buyers
A view of My Dinh Urban Residential Area in the capital. The domestic property market has witnessed the return of high-end projects with high rates of sales from the third quarter of 2014.

HANOI - After focusing on low-end projects in previous years, the property market has witnessed the return of high-end projects with high rates of sales from the third quarter of 2014.

At the opening of Vinhomes, a high-end apartment project on Nguyen Chi Thanh Street here at the beginning of this month, more than 250 units or 70 per cent of the total number were successfully sold at prices reportedly ranging from VND3 billion (S$180,000) to VND10 billion per unit.

Units of Little Viet Nam, a project replicating the old architectural features of Ha Noi and Hoi An in Quang Ninh Province's Ha Long Marina Urban Area, were also sold out three hours after opening last September.

Syrena Viet Nam, the project investor, said the large number of interested buyers compelled it to organise a draw to decide who would have the right to purchase.

Other property projects likewise reported successful sales in the third quarter of this year such as Starcity, Diamond Flower Tower and Dolphin Plaza.

Previously, property expert Dang Hung Vo said there were still opportunities in the high-end segment of Viet Nam's property market, although high inventories remained a problem in this segment.

He revealed that it was important that investors knew how to make their projects attractive to buyers and stressed the importance of profits, living environment and conveniences.

Amid worries over the return of a property fever similar to that of 2009, an expert said this was a good time to put property projects on sale because property was becoming an attractive investment channel amid the decline of world gold prices to a four-year low and the reduction by the State Bank of Vietnam of deposit interest rates.

Quarterly market reports of several property companies noted that many buyers have returned to the real estate market as investors or speculators. The participation of speculators and end-users have so far helped the property market see improvements in the third quarter.

Vietnamnet online newspaper quoted Vu Cuong Quyet, general director of the Greenland Service and Real Estate Joint Stock Company, as saying that the market, boosted by rising demand, would remain on a positive trend in the last quarter of this year.

In the long-term, he added, property market recovery would depend on macro-economic recovery. At a recent seminar on the property market, Quyet said the macro-economic situation had witnessed improvements, with falling bad debts and stable stock and financial markets.

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