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Why the rich from around the world are eyeing branded residences in this country

A bright economic outlook and legalisation of foreign property ownership is expected to stoke international demand for branded residences in Vietnam

Vietnam’s stellar economic outlook, rapid population growth and the rise of its middle class is expected to stoke demand for residential property in the coming decades. PHOTO: MASTERISE HOMES

Even as dark clouds loom for the global economy, one country in this region is shining bright. Vietnam has made a remarkable recovery from the pandemic-induced downturn and is leading economic growth in Asia. Both the International Monetary Fund (IMF) and the World Bank have revised the country’s economic growth for 2022 upwards, setting it apart from other major regional economies such as India, Japan and China.

Anyone who has been following Vietnam’s ascent in recent decades would hardly be surprised. Between 2000 and 2022, the Vietnamese economy grew by an average of 6.27 per cent per year, one of the fastest in the world. The IMF in its latest update predicted that Vietnam will grow by 7 per cent this year even as it cut growth estimates for other Asian economies. The World Bank likewise revised its projection from 5.3 per cent to 7.2 per cent, the highest figure for any nation in East Asia and South-east Asia.

Here are some compelling reasons for even more bullishness in the years to come: Vietnam’s attractiveness to foreign investors, its strong trade links with the world, and a stable business and social environment.

  • Strong foreign direct investment (FDI): FDI into Vietnam averaged US$7.1 billion (S$9.7 billion) from 1991 until 2022, reaching an all-time high of US$20.38 billion in 2019. As of September this year, FDI stood at US$15.4 billion, some 15 per cent higher than a year earlier. Significant manufacturing presence of top companies such as Adidas, Nike and Samsung have entrenched Vietnam as a key part of the global supply chain for textiles, footwear, and electronic manufacturing.
  • Global trade links: One of the most open economies in the world, Vietnam has signed various bilateral and multilateral trade pacts with major trading partners. These will ensure the country enjoys thriving trade and enhance its position in the value chain of different business sectors and in overall global competitiveness.
  • Conducive business and social environment: Major companies have moved their manufacturing from China to Vietnam to take advantage of the low costs, developed infrastructure, supportive business environment, and success in controlling the pandemic. For instance, Foxconn, the Taiwanese electronics maker that contracts with Apple and other major technology companies, is slated to invest US$300 million in a new factory in northern Vietnam.

Opportunity in Vietnam real estate market

Vietnam’s stellar economic outlook, rapid population growth and the rise of its middle class – now numbering 44 million – is expected to stoke demand for residential property in the coming decades. Just look at the market in two of the country’s top cities: Prices have jumped 33 times in 18 years in Hanoi’s central business district, and 21 times in 16 years in Ho Chi Minh City.

Another important factor for the boom must surely be the country’s legalisation of foreign property ownership since 2015. Foreign homebuyers are granted the same ownership and land use rights as Vietnamese, and are not required to live or work in Vietnam.

No wonder more and more foreign investors are considering Vietnam property, especially high-end homes, says Mr Dung Duong, executive director at real estate services and investment firm CBRE.

Grand Marina, Saigon (Marriott and JW Marriott Residences) in District 1, Ho Chi Minh City, has proven its success in global markets with sales in Hong Kong and Singapore buyers . PHOTO: MASTERISE HOMES

“With the number of ultra-high-net-worth individuals significantly increasing in Vietnam and foreign investors making a comeback after the pandemic, high-end and luxury properties will continue to receive a lot of interest, especially well-branded projects with assured product quality,” he says.

Buying into global brands

Masterise Homes, a developer of luxury properties, is well-placed to meet this demand. The company is a pioneer in bringing world-class excellence to the development and management of luxury real estate products and services in Vietnam and beyond. It is the first to bring branded residences to urban locations, namely Hanoi and Ho Chi Minh City.
 
Branded residences are luxury homes built by a developer in collaboration with a well-known brand. Buyers can be assured of the same standards in design and service they have come to expect of the brand.

“An emerging market with the fastest growing branded residential sector, Vietnam offers untapped potential of which seasoned global investors could take advantage,” says Mr Gibran Bukhari, head of sales of Masterise Homes. “Vietnam is among hotspots for branded residences with over 30 projects in the pipeline. Such level of confidence from global brands could instill confidence in global buyers.”   

Vietnam’s first Ritz-Carlton Residences, The Ritz-Carlton Residences, Hanoi at The Grand offers timeless assets for trophy hunters around the globe. PHOTO: MASTERISE HOMES

Taking pride in its branded residential portfolio which is the largest in South-east Asia, Masterise Homes are bringing to the international markets The Ritz-Carlton Residences, Hanoi at The Grand, and Grand Marina, Saigon – the world’s largest branded residential project and the first in Vietnam to feature Marriott and JW Marriott Residences. 

The project’s exclusivity is enhanced by its location between the Saigon River and the Botanical and Zoological gardens. 

Grand Marina, Saigon is a mixed-use complex with five branded residential towers and a commercial building named The Sun Tower overlooking Saigon River, lush parks and gardens. PHOTO: MASTERISE HOMES

“Location is the top motive behind purchases of branded residences at Grand Marina, Saigon, both from our local and international buyers,” says Mr Bukhari. “It is such a unique and unrivalled riverfront location in District 1, considering its heritage and how limited land bank is for new residential developments in the city centre.”

The development is a mixed-use complex with five residential towers etched with abstract tree forms, inspired by the iconic gon tree from which Saigon takes its name. Also part of the development is The Sun Tower, a 55-storey mixed-use building with over 106,000 sqm of floor area, including a 20,000-sqm shopping mall. 

Landscaped parks and lush gardens surround the Grand Marina’s towers, which overlook a sprawling Waterfront Park where residents can relax or enjoy outdoor activities on shaded lawns and in waterplay areas.
 
All-day cafes and restaurants offer local and international cuisine, while elegant shops located at the base of each residential tower promises upscale retail therapy on your doorstep. 

Says Mr Bukhari: “We’re proud to be bringing to life these unique projects, and to introduce it to both local and international markets.” Masterise Homes joined forces with UK-headquartered international sales agency Druce, which held roadshows in Singapore last month, and is targeting buyers in Europe and Dubai.

Visit https://www.druce.sg/ for more information. 

Disclaimer: 

The Marriott & JW Marriott Residences, Grand Marina Saigon are not owned, developed or sold by Marriott International, Inc. or its affiliates (“Marriott”). The Marriott & JW Marriott marks are used under a license from Marriott, which has not confirmed the accuracy of any of the statements or representations made herein. Masterise Homes and its affiliates are responsible for the accuracy of any of the images, statements or representations made herein.

The Ritz-Carlton Residences, Hanoi are not owned, developed or sold by The Ritz-Carlton Hotel Company, L.L.C. or its affiliates (“Ritz-Carlton”). The Ritz-Carlton marks are used under a license from Ritz-Carlton, which has not confirmed the accuracy of any of the statements or representations made herein. Masterise Homes and its affiliates are responsible for the accuracy of any images, statements or representations made herein.

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