What Vietnamese real estate attracts foreigners?

The attractiveness of Vietnam's real estate market is explained by the potential for high profits, high-quality products, the Housing Law, which is relaxed and especially attractive prices when the same amount of money, instead of investing. 1 apartment in your country, when you come to Vietnam, foreigners can buy 3 apartments.
A report of the Ministry of Construction recently said that nearly 3,000 foreign organizations and individuals, Vietnamese residing abroad who buy houses in Vietnam, have been recognized by the local Department of Construction.
Attractive price
Affirming that foreign investors are interested in Vietnam's real estate, CBRE Vietnam Co., Ltd. also revealed: in the third quarter of 2019, the demand for apartments from foreign investors is trending increase in Vietnam. In particular, the number of South Korean tourists, Hong Kong, Taiwan accounts for about 85% of foreign visitors to buy houses in Vietnam.
Recently, Mr. Nguyen Khanh Duy, Director of Ho Chi Minh City Housing Sales Department, Savills Ho Chi Minh City, also said that Korean investors are now among the leading foreign businesses interested in real estate. production of Vietnam.
According to a major Korean newspaper, Korean individuals and businesses spent up to $ 440.1 million on real estate abroad in 2018. The US is still the most popular destination for real estate investment with 255.2 million USD, but in second position is Vietnam is booming with 56.1 million USD.
The attractiveness of Vietnam's real estate market is explained by a number of factors such as attractive selling price, high profit potential, and high quality products due to the participation of reputable developers and the Law. Housing in 2015 was eased to create conditions for foreigners to buy houses in Vietnam.
In addition, apartment prices in Ho Chi Minh City and Hanoi are generally lower than regional centers in the region, although growth rates are much stronger. New home prices in downtown Ho Chi Minh City currently average around 5,500 - 6,500 USD / m2, only a fraction of the price of houses in Hong Kong.
Meanwhile, the rental profit of more than 5% shows that this is an attractive investment compared to other markets in the region.
According to Mr. Duong Duc Hien, Director of the Housing Business Division of Savills Hanoi, in the past 14 years, Vietnam's real estate market has made great progress, thinking about architectural ideas compared to the time. Score 10 years ago was much better.
Previous projects that lacked in utilities, living space, and quality of life were not high and have now been improved and improved. Moreover, issues of work quality, handover conditions, technical infrastructure are also guaranteed compared to before.
Especially, after Vietnam joined APEC, there was a large wave of investment from abroad, followed by a set of customers from Korea, China, and Japan to Vietnam. In particular, there are retail investors began to focus on real estate.

Attractive selling prices and good profits attract foreigners to buy houses in Vietnam

Good profit
Explaining the attractiveness of the Vietnamese real estate market, Mr. Hien said that customers have shared with Savills that the same amount of money instead of investing an apartment in their home country when coming to Vietnam has can buy 3 apartments. As such, foreigners can diversify their portfolios. Meanwhile, rental income brought in Vietnam is quite good.
“For external investors, the annual rental rate based on a ratio of 4 - 5% is successful. Especially for countries with stable economic growth”, Mr. Hien said.
Ms. Nguyen Hoai An, Director of CBRE Hanoi's consultancy and research division, said that the trend of foreigners, especially Koreans buying houses in Vietnam, has occurred in the last 4-5 years and this trend. continues in 2019 in both Hanoi and Ho Chi Minh City.
In the first 9 months of 2019, foreigners in some other countries and territories also increased interest in buying houses in Hanoi such as Taiwan, Hong Kong, Singapore.
Ms. An explained the increasing trend of buying houses from foreign visitors in Vietnam, reflecting the potential of the real estate market in the context that the Vietnamese economy is showing positive signs of growth. In addition, compared with prices in neighboring countries, such as South Korea, housing prices in Vietnam in general and Hanoi in particular are attractive.
For example, the average unit price (near high-end) in Vietnam is only about 2,000 - 4,000 USD / m2, while in Korea it can be up to 15,000 - 20,000 USD / m2. This is also the basis for expectation in the coming years, Vietnam's real estate prices may increase.
However, according to Ms. An, the development of the real estate segment for foreigners also includes difficult and favorable factors. One of the favorable factors is that there are many foreigners who like Vietnam real estate market and assess that Vietnam's real estate market has great potential.
Meanwhile, to serve and meet the requirements of foreigners requires solving many factors such as the foreign language ability of the seller, the product is suitable for the tastes of foreigners, the management house management for foreigners when they are not in Vietnam.

Source: Phạm Minh/thoibaokinhdoanh.vn

 

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