- Vietnam is the next luxury real estate hotspot, Bloomberg
- An explosion of new luxury developments, fueled by a strong economy and legislation making it easier for foreigners to buy property, is attracting wealthy international buyers.
- These swanky condos, popping up in Ho Chi Minh City on "Saigon's Wall Street," cost a fraction of what they would in markets like. New York City or Hong Kong
Forget New York City or Hong Kong. The newest hotspot for luxury real estate is Vietnam.
The Southeast Asian country has seen a surge in luxury real estate development, Bloomberg reported, thanks to a booming economy and laws making it easier for foreign buyers to buy property in Vietnam.
Vietnam is "where southern China was 1
Vietnam's economy is seeing strong growth, according to Al Jazeera. And in 2015, made it easier for international buyers to obtain long-term leases and buy property in Vietnam, Mansion Global reported.
Ultra-luxury living at a low price point
A luxury apartment in the city center of Ho Chi Minh City can cost upwards of $ 5,000 per square meter, or $ 465 per square foot, Sunny Hoang, associate director of International Residential Sales at Savills in Ho Chi Minh City, customs Mansion Global. Compared to other cities, that's an absolute bargain.
In Hong Kong, a similar home can easily cost four times more than that, Hoang said.
Average prime home values in Hong Kong are now at $ 4,660 per square foot, According to a separate Mansion Global report, while Manhattan real estate costs an average of $ 1,773 per square foot.
At Feliz en Vista, a four-tower luxury condominium development in Ho Chi Minh City's District 2 developed by Singapore-based Capitol, buyers can choose from a mix of garden villas, duplex penthouses, and "sky mansions." The property offers ultra-luxury amenities including a swimming pool with hot spring Jacuzzi and water slide, an outdoor movie theater, a treetop adventure walking bridge, a fitness center, sky garden, library, playground, tennis court, and parking.
The condos launched at prices between $ 232 and $ 290 per square foot. On the high end, this would come out to $ 1.56 million for one of the building's 500-square-foot penthouses.
More than 99% of the units at Feliz and Vista were sold by the end of 2018, and representative of the developer customs Business Insider
And at the The Grand Manhattan, a 39-story development Ho Chi Minh City's District 1, known as "Saigon's Wall Street," the New York City-inspired condos starts at about $ 557 per square foot.
Compare that to NYC, where Even a tiny penthouse can cost $ 2,143 per square foot and it's common to see asking prices of $ 10 million and up. And in Hong Kong, which has one of the most expensive housing markets in the world, a modest house that would be classified as a knockdown is selling for staggering $ 446 million.
Not only foreign buyers
International buyers may be jumping to invest in Vietnam real estate, but wealthy locals are giving them competition.
"We have more and more very rich Vietnamese, especially entrepreneurs looking for places to put their money," Neil MacGregor, a managing director at Savills Vietnam, told Bloomberg.
Vietnam now has 142 people who are worth more than $ 30 million, according to 2019 report from global real estate consultant Knight Frank.