As a prospective apartment buyer, you’re likely concerned about prices. However, not everyone is aware of the different segments in the apartment market, which largely determines how much you’ll pay as luxury doesn’t come cheap.
Playing on this psychological factor, many developers launch their projects with enticing tags such as “luxury apartments,” “Grade A apartments,” or “high-end apartments,” inflating prices unreasonably. But do these apartments truly reflect the value they advertise? That remains a question.
To ensure you get your money’s worth, it’s essential to understand the various apartment segments before making a purchase decision.
According to Decree 95/2024/ND-CP, issued on July 24, 2024, by the Prime Minister, apartment classification aims to determine the value of an apartment during transactions or management. This classification is only done upon the request of the apartment’s investor or owner and is carried out by socio-professional organizations with expertise in construction, real estate, and housing.
Apartment buildings are classified into three grades: Grade 1, Grade 2, and Grade 3 (instead of Grades A, B, and C), based on 13 criteria. These include eight mandatory criteria, such as location, on-site amenities, parking, hallways, elevators, electricity supply, and the apartment unit itself. The minimum requirement is compliance with construction standards.
The remaining five criteria are supplementary and relate to property management services, environmental considerations, security and safety measures, green building and energy efficiency practices, and digitization for smart homes.
Source: Decree 95/2024/ND-CP
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According to market reports by CBRE and Savills Vietnam, the price range for luxury apartments (Grade A) is VND 60-80 million per square meter, while middle-class apartments (Grade B) range from VND 35-60 million, and affordable apartments (Grade C) cost around VND 20-35 million per square meter.
Apart from understanding the characteristics of each segment and grade, homebuyers should also research and choose reputable developers with a successful track record. Such developers are more likely to ensure timely delivery, uphold their commitments, and take responsibility for resolving any issues that may arise after handover.
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