According to Nguyen Mac Hoai Nam, CEO of Nam Phat Investment Consulting Company, if we can ignore the extremely expensive price, which is considered the biggest drawback of real estate in HCMC’s central districts, this type of asset has many outstanding advantages.
Nam pointed out 6 main reasons why central properties are very expensive but still favored and hunted by the super rich in Vietnam.
1. Homes in central areas are the ultimate savings
The city’s downtown area is the "gathering place" of office buildings, with a huge flow of people going to work every day. Therefore, if you live in the suburbs, you will certainly lose more time traveling on roads. This is a dead time, or a huge waste for your life. Apart from time, it will take from you many efforts to move difficultly due to traffic congestion in rush hours. Therefore, mayny people say owning a home in the city center means you get an ultinmate savings asset.
An aerial view of downtown Ho Chi Minh City. (Photo: Vu Le)
2. Service quality in the city center is always the highest
In comparison to suburban areas, most utilities including schools, hospitals, banks, administrative offices, entertainment and commercial centers in the central area are more diverse with much better quality. In fact, the central schools always have high standards compared to suburban and suburban areas. Most schools at the center level are good schools desirable. This is also the reason why parents always try their best to buy homes in the central area even though property prices there are much higher.
3. The urban core provides higher security
The security standard in downtown area is certainly superior to that of suburban areas. Security there always gets the top priority. The central area is considered face of the city, so the environmental sanitation is cared better. For example, it is almost impossible that houses in the city center are located next to landfills or factories, while this situation is not rare in suburban areas. Power cut and water shortage arare also rarely disconnected from electricity and water. Moreover, the working environment in this area is also better since most of the high-paid jobs are concentrated there.
4. Homes in the central area are always scarce and sought after
Properties located in the urban core are always in demand because of their limited number and favorable positions. In addition, since there is no new supply added to the market, homes in central area have become valuable assets over time. For many people, this is considered the “dream asset”. This type of housing is always at the peak in all times, at almost all real estate markets over the world. Most rich people in any country or territory, when they have a lot of money, aim to own homes in the central area. People with less money will also seek to buy smaller houses but in the central area instead of bigger ones in the less developed suburbs.
5. Homes in central area are the most versatile investments
Homes in the urban core mostly get better advantages of commercial value, rental yield, investment, asset accumulation, anti-inflation, etc. Therefore, central homes are considered a multi-purpose investment option. For example, apartments in District 1, Ho Chi Minh City, despite asking for extremely expensive rents, are still easier to find tenants than cheaper apartments in suburban districts like District 9 or Thu Duc District.
6. Central home ownership is a symbol of wealth
Not only an asset, a home located in the urban core is also considered a symbol of its owner’s wealth and class compared to the rest in society. Property ownership in the downtown of big cities is also considered a special collection or a passport to join the upper class. Property ownership in central areas has a very strong impact on the value of the owner’s personal brand.
