Before the satellite urban wave, how was the central real estate affected?
CBRE Real Estate Group’s 2019 Global Living Annual Report in November 2019 announced the top 10 most expensive cities in the world. In particular, Hong Kong and Singapore continued to hold the top two positions with the average residential assets of USD 1,235 million (USD 2,091 / m2) and USD 874,372 (USD 1,063 / m2) respectively. This list of expensive real estate markets also records many other major economic and financial centers such as Shanghai, Vancouver, Los Angeles, New York, London …
According to CBRE experts, high quality infrastructure, economic growth along with the strategic center position are the main factors driving the value of real estate in cities. This position of real estate value is automatically the global trend. Accordingly, although the wave of satellite cities is emerging strongly in many parts of the world, real estate in the central areas is always the target that all residents and investors want to “squeeze”. to get.
The affirmation of unique value
Talking about the “position” in the advantage of central real estate must be a bit redundant. Because this area possesses many immutable advantages as a matter of course, it makes the elites constantly hunt though it costs many times higher than the real estate in the suburban areas and constantly facing the environmental problems or overpopulation.
The city center is an area of strong public investment from infrastructure, transportation to a system of administrative, commercial, educational and cultural agencies … forming a diverse functional network. but all the key routes are here. The process of urbanization has also stimulated waves of migration and trade from many localities, while at the same time producing many types of services, both meeting the increasing demands of residents and shaping the attraction. compulsion of urban life.
In particular, as an indispensable rule, the central city becomes the ideal choice for tourists both at home and abroad, even if their destination is located on the outskirts. They have many choices of services, convenient transportation and especially experience the typical space, which clearly shows the economic power as well as the cultural personality of each region.
On the other hand, many companies and large corporations in the world also prioritize their headquarters or representative offices in busy urban centers. The central location of the urban center enhances the brand value for businesses, while providing many high-class facilities that the peri-urban area is hard to meet.
The above evidence can help lead to an important conclusion that the value of real estate is anchored to the “location.” Therefore, the real estate in the central urban area must have a unique position. As a development process under the domino effect, real estate has a prime location, which is valuable, even increased and sustainable over time.
Which measure is for central real estate prices?
In fact, real estate prices in different central areas, or on different routes of a central urban center are completely heterogeneous. For example, in Da Nang city, all are urban districts but the price of land in Hai Chau district – the location of the city administrative center, Da Nang international airport, commercial centers and national offices It is often higher than the price of land in Thanh Khe district.
In particular, in Hai Chau district, busy roads facing the center such as 2/9 business road, Bach Dang walking street, Nguyen Van Linh commercial street … are more expensive than Hoang Dieu and Yen streets. Bai, Trung Nu Vuong … even though they are all in the same area.
The real estate prices are determined depending on the commercial potential at each time. Because the market is constantly moving, not every time the price of central real estate also increases. However, in the long-term vision, central real estate is less prone to sudden price increases like suburban areas, while avoiding the currency’s downward trend and having a relatively stable growth. This market segment is not only the target of successful people who want to assert their position, but also show how big the gap between the suburbs and the central core is.
Wise property center central
CardGrant Cardone, entrepreneur and author of the best-selling New York Times books, told CNBC in an interview about real estate investing: “Putting your money in real assets is always a good idea. But that does not mean that all real estate is a good idea. I only buy certain types of real estate, usually those located in densely populated areas or high-end locations, which provide stable cash flow with great potential in the future ”. In Vietnam market, what is a “good idea” for a real estate investment “with great potential in the future”?
If Ho Chi Minh City’s central real estate is becoming increasingly scarce, and investors continue to be optimistic about this market before the rise of the middle class and the arrival of the rich overseas, land prices could have reached 750 million VND / m2 (Nguyen Hue street), 420 million VND / m2 (Nguyen Dinh Chieu street), 140 million VND / m2 (Nguyen Thi Minh Khai street) …
The same survey on batdongsan.com and homedy.com channels, similar to Ho Chi Minh City, the price of land in the center of Hanoi Capital is also hanging at a very high threshold. Even, the price at many routes is such as Tokyo, Paris.
Owning real estate in the central areas is clearly not as simple as buying land in the fringes. However, this tough hunting is still very interesting in the eyes of the super rich. Because after all, central real estate is not only a sustainable investment that helps to generate stable profits, but also a testament to the owners’ financial and social status. However, facing the fact that the supply of central real estate is increasingly scarce and expensive, along with topical issues about the population, the environment, investors should carefully consider the integrity of the road. for a wise investment.