(Photo: VET Magazine)
Vietnam has seen rapid growth in the super-rich class thanks to its prosperous economy. The country ranks fourth among the world’s top 10 countries and territories with the fastest millionaire population growth, with a rate of 10.1 per cent, according to a new report published in January by global wealth research firm Wealth-X. In another report released last September, Wealth-X noted the ultra-wealthy population in Vietnam increased by 12.7 per cent from 2012 to 2017, making it the third-fastest growing country in the world in this regard. The boom in the upper class brings more potential for the high-end and luxury property segments, according to Savills Vietnam.
The downtown area of Ho Chi Minh City is getting busier, with many leading real estate investors trying to attract the elite class with luxury, sophisticated projects that come with a wide range of amenities. Following the global trend in smart buildings, digital technologies applied in those developments have been brought to Vietnam to appeal to buyers.
Iconic projects
As Ho Chi Minh City has approved a project to develop its real estate market in the next 10-15 years, this will inevitably lead to smart cities and green architecture that adapt to climate change. Smart is now a global trend due to advanced development and the influence of digital on many aspects of daily life, according to the representative of Alpha King Real Estate. “The concept of smart is leading people, especially young people, to the future. We believe that ‘smart’ can contribute to a better living environment. By using the innovation of technology as a tool, we are piloting the building of a smart economy in all of our products,” he said.
Located at the junction of Nguyen Cu Trinh and Cong Quynh, just a few minutes’ walk from Ben Thanh market, the cultural symbol of Ho Chi Minh City, the ultra-luxury Alpha City project, developed by Alpha King, is the highlight of the real estate market thanks to a great combination of unique design, creative space allocation, and the application of advanced world technology.
For the high-income population, ultra-luxury apartments in the city center are like a premium bottle of wine. Inspired by the Shanghai Bund style, Alpha City comprises the Grade A office building Alpha Town and the 49-levels landmark twin tower building, with Alpha Mall taking up the first eight floors and Alpha Hill patterned apartments the remainder.
The spotlight of this integrated project is Alpha Hill, the first transformer home in Vietnam, with advanced world technology such as facial recognition and BIM systems that help improve efficiency in construction. This ultra-luxury residential project is equipped with five-star standard furniture such as built-in refrigerators, large kitchens with Touch2O water taps, smart mirrors with a touch screen that allow users to surf the internet, smart toilets meeting Japanese standards, and showers with an additional massage function. When residents want to have a world-class entertainment experience, the smart apartment can become a mini studio thanks to the Home Theater system from Samsung.
The most interesting area will be Alpha Mall, an “international bazaar” that combines an authentic street shopping experience with modern retail aspects to offer a unique and trendy shopping experience. The mall promises to lead the new retail trend in Vietnam, with integrated retail and food and beverages (F&B).
Smart choice
The application of modern technology has become key for real estate developers to satisfy the elite’s growing demand for better living spaces. “Understanding this need, Alpha King has pioneered the building of an integrated development in the heart of the city, where people can enjoy an extraordinary experience just a few minutes away from the office, shopping malls, and top-notch restaurants and bars,” said Alpha King’s representative.
“Entering the era of Industry 4.0, we believe the definition of high-class value in the luxury real estate sector has changed. Our greatest goal is to build smart buildings, constituting the integrated model of Live - Work - Play with high quality projects, contributing to a smart city. This is also in line with the government’s plan (2018-2025) to build sustainable smart cities that are based on green growth and sustainable development, utilizing the strength and potential of the cities in order to raise the living standards of their residents,” he added.
In that context, Alpha King is expressing its ambition of redefining “luxury living” in Vietnam’s real estate market, especially in Ho Chi Minh City. Such discussions help provide solutions to many issues regarding architecture and urban lifestyles in the city in particular and in vibrant urban areas around Vietnam as a whole.
Thanks to its scarcity and iconic symbolism, luxury real estate projects have a strong position in the market, especially those in the city center, since they satisfy the dream of an opulent lifestyle and serve as affirmation of social status, value, and success for their owners. “Vietnam is an emerging market for luxury real estate projects, serving the needs of a young population with a strong entrepreneurial mindset and rapidly growing wealth level,” said Mr. Stephen Wyatt, Country Head of JLL Vietnam.
From an investment perspective, luxury real estate is extremely lucrative. Although prices may seem high at first, when taking a closer look, it’s only a quarter of the price of projects of the same quality in Singapore or Hong Kong. The sustainably growing demand for this type of project in the future will create an attractive investment opportunity for investors with long-term strategies.
That is why foreign investors, especially from Singapore, Hong Kong, South Korea, and China, are coming to Vietnam to “hunt” for potential projects, especially high-end and luxury apartments in city centers. “Many projects have large orders of four times higher than the quantity offered,” said Ms. Duong Thuy Dung, Senior Director from CBRE Vietnam. “These projects are located in the central area, where land for real estate development is limited, accompanied by an increasingly improved appearance.”
Vietnam last year recorded economic growth of 7.08 per cent, with foreign investors pouring in more than $19 billion. The emergence of luxury projects has added an important piece completing the look of big cities in Vietnam, as well as reflecting the rising economy of a country that has the potential to become the new tiger of Asia, as assessed by The Economist magazine.
