Vietnam, site of Trump-Kim summit, is a hot market for luxury property
While President Trump and North Korea leader Kim Jong Un’s second summit in Vietnam’s capital is creating a lot of buzz for the city of Hanoi, according to the real estate data, certain areas in country have been thriving for quite some time.
According to Bloomberg, prices for luxury condominiums in Ho Chi Minh City, a populous city of Vietnam, have climbed 17 percent in 2018 to an average $5,518 per square meter, citing data from CBRE Group Inc.
What’s more, the firm predicts those prices are expected to climb nearly 10 percent more by early 2020 to $6,000 per square meter.
Affordable condos in the area, however, have only increased 1 percent last year.
Though, according to data from Savills Research & Consultancy, Knight Frank, while high-end properties have seen a boost in certain areas in Vietnam, its prices are still much cheaper than high-end properties in Hong Kong, Singapore, Tokyo and Bangkok.
Neil MacGregor, managing director at Savills Vietnam told Bloomberg, that many developers in the country are now turning their focus from the middle class towards the more affluent crowd to keep up with demand.
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And, while the country is seeing luxury property demand from overseas investors, its latest wave of buyers are among locals.
Bloomberg noted a 2017 report by Knight Frank that found the number of people with net assets of $30 million or more have increased by 320 percent from 2006 and 2016, which is the fastest pace globally ahead of India and China.