Branded residences will have more opportunities and space to develop in Vietnam in the future, speakers told the online talk show “Recognizing the trends and potential of branded residences” held by Vietnam Economic Times (VET) and VnEconomy on October 11.
The demand for branded residences in Vietnam appeared long before the pandemic, but when Covid-19 broke out the psychological changes and lifestyle changes unintentionally highlighted the values of the luxury real estate segment.
Branded residences can ensure a luxurious lifestyle virtually uninterrupted by social distancing, by providing the highest standard services and facilities right in an apartment. They also create trust and protect values by following high-end standards verified by global industry leaders, according to Mr. Gibran Bukhari, Head of Sales at Masterise Homes. The limited quantity in the segment also contributes to its value, he added.
Meanwhile, Dr. Le Xuan Nghia, a member of The National Financial and Monetary Policy Advisory Council and Director of the Institute of Business Studies and Development, believes that the branded residences segment in Vietnam is weak; not because people lack money but because their habits have not changed. Consumers have not experienced high-end projects while investors and providers are wary of not being able to immediately change consumer habits.
In Vietnam, at the moment, no branded residences projects have come into operation, so the supply is not yet available. However, the demand for luxury residences in the country will rise, as the rich and super-rich are growing in number by 36 per cent, according to Ms. Duong Thuy Dung, Senior Director of CBRE Vietnam.
To further develop this segment in Vietnam, project owners should choose real estate in the city center and add many other functions to each apartment. In the future, to attract more FDI, investors can consider other areas. “I think that in general with luxury real estate, there are some small challenges in the short term, but in the long term, it is mainly opportunities,” said Mr. Nghia.