Luxury real estate market bet

Many projects in the premium segment is still breaking ground and offers, though steeped in market promotions, discounts viec lam and cheap reality every new transaction.Experts warn this type of chance comeback unpredictable.

> Sell Real Estate upstream style

> Racing built building crisis

Despite the South and the East Park Ho Chi Minh City under shock sell-off last year with a 20-35% reduction (An Tien project, camera quan sat Landmark New Saigon and PV), Phu My Hung Company remains open to sell $ 22 villas, 3-70 in District 7 billion today 19/5. Earlier this unit has also launched a project of the highest price up to 90 billion.

While the Bitexco Financial Tower is more than 40% of empty, still breaking Bitexco luxury project The One with $ 500 million capital investment. Project located in the top product: Grade A +, 6 star hotel, commercial area according to international standards ...

Complex projects the luxury Bitexco chong set The One Group is breaking ground in HCMC gold. Photo:

Moreover, the wave of sell-off, reduced-price segments, investors luxury project also goes against the market trend is to increase the price. For example, the case of Diamond Island project, District 2, Ho Chi Minh City, although the apartment million in 2011, but the investor is to increase the price the 4th. As from September / 2009 (coincides with the period of real estate began in crisis), this project multiple times comeback wave of price cuts, more incremental price increases of up to 27%.

Was considered risky, investors luxury projects still optimistic. Investors take a villa project in HCM City business will be the output message for the product. He said: "The market crisis is how any business direction also hard, this is generally difficult. It is important to locate the right products and find the right audience needs."

As tens of billion a 460-700 m2 villa in the heart of modern urban center of Ho Chi Minh City may be higher than some other projects but not expensive because the products surveyed, public investment and create public different from the rest. "I believe 80 million people in Vietnam still wants to own this type villa," he said.

Tens of billion villa is offered for sale in South Ho Chi Minh City, which was the focus of selloff (20-25%) property in 11/2011.

As chief executive officer of Bitexco In Suk Ko believes that the future real estate market will warm up again. Experts had worked 30 years at E & C Group Huynhdai that demand for the luxury segment has always existed, like business people always need to use class airfare first class seats. "I spent several lessons on the international market that, in difficult times if you give up, success will never come," Mr In Suk Ko said.

While investors in luxury projects were optimistic they swim upstream of this project is considered quite daring, great opportunities but also no small risk.

Associate Dean of Business Administration University of HCM City banks, Trinh Quoc Trung analysis: "Sales of luxury goods always exist in any industry, including real estate. Whether in prosperity or stage difficult, this movement never stops because social needs are diverse. "

Million dollar apartment on Diamond Island is by investors to increase the price several times despite terrible price up to millions of dollars between the time the real estate market declined. Photo:

However, according to China, there should be objective perspective that prices have come with super-expensive super risky. With both buyers and sellers of luxury product line, has an opportunity here as well as challenge and is like double-edged sword.

Mr Trung explained, the high price of rare but can always find a suitable product.So the liquidity of the products also have some pressure, especially when the crisis is not ending. Cost of sales, marketing and camera quan sat  extremely expensive, so the pressure is not small. "If real estate prosper, that is another story. Let the self-regulating market segment. But I believe there also needs it to be," he said.

General manager of real estate planned, Pham Van Hai forecasts: "The factors: discount, psychological fleeing the market, trading constraints, until the price falls further and liquidity support are not limited household real estate. "

Many real estate professionals segment forecast to be sold, not when the market started showing signs of recovery will likely face many camera quan sat  challenges. Because the segment of luxury even in small numbers, are considered "rare" but unavoidable whirlwind of market discounts.

I/2012 quarterly report of CBRE, luxury apartments in HCM City have dropped 4% on the secondary market  chong set from the previous quarter and loss to 9.4% over the same period last year. Meanwhile, houses attached to land (villas), viec lam also fell 4% and take 24% over the same period in 2011. Similarly, the office market leasing during the quarter also continued to lose value I/2012. Particularly Grade A office supply is even more scarce for the class B and C, but still off 2.4% from the previous quarter and take up to 10% over the first quarter of 2011.