Analysis: Defining luxury real estate in Vietnam

PRSEA | Jul 25, 2012 | 

Vietnam resort

Luxury is such an abstract concept that its definition is always evolving according to what the market perceives as luxury.
With regard to the property market in Vietnam, the real question is whether luxury properties are able to provide “a state of great comfort or elegance, especially when involving great expense”, as defined by the Oxford Dictionary Online. The market is certainly delivering luxury homes at great expense, but are these luxury homes comfortable, elegant, and truly luxurious? Are they able to deliver a luxury lifestyle?

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The most common denominators in defining luxury property are location, size, and price. In fact, luxury residences are dependent on the most fundamental elements of real estate — location — perhaps more so than other classes of real estate. Whether that location is a district, a neighbourhood or a particular road, the location of a home affects its value and ultimately becomes a primary factor in determining the level of luxury.
After location, price seems to be the foremost defining factor in Vietnam. A high price limits the quantity of homes created, and acts as a barrier, which allows access to only the wealthiest of buyers. To live in a state of great comfort, however, size also matters. The size of the property both inside and outside the home factors into the standard of luxury. What can demonstrate your wealth more than owning a large, expensive space that is used for nothing more than personal enjoyment?
Developers must walk a fine line justifying the price versus the attributes of the property. Trophy homes, a measure of success, which may be based on price alone, may not truly be luxurious. Construction quality, along with finish, fittings, features and the facilities available can also make a property truly luxurious. Lastly, the level of services within the development, such as security and landscaping, are elements that help create a sense of comfort and tranquility for buyers, thus helping to create a luxury lifestyle.

About the Author:
Patti Joslin Ndzana Etoga is a director for residential services in Ho Chi Minh City for CB Richard Ellis (Vietnam) Co., Ltd. patti.ndzana@cbre.com www.cbrevietnam.com