The extended slump in the Vietnamese real estate market has not deterred some developers from launching more luxury projects.
News website VnExpress quoted a source as saying the Caye Sereno Ha Long project, which was recently licensed, would sell seaside villas at more than US$1 million.
Becamex Tokyu Ltd. began work on a new urban residential development in the southern province of Binh Duong last week. Units are expected to be sold at $1.2 million.
Sales have begun at a luxury project in Hanoi where apartments are decorated with gold and can cost up to $1.7 million.
While some industry insiders welcome the continued capital flows into the high-end segment, analysts warn that the new projects will further inflate supply in a market that is already reeling.
Le Xuan Truong, director of property firm B.D.S, said it is now a huge risk to build luxury apartments. While there are affluent customers in Vietnam, they are not easily pleased or convinced to sink a lot of money in these economic times, he said.
"Many developers who have invested a lot of money in properties are now struggling to find buyers despite large discounts."
Luxury apartment prices in Hanoi are declining, with major projects offering price cuts of around 15 percent.
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