Property Vietnam According to Peta Tomlinson Journalist of SCMP
“Want the Nguyens as neighbours? Interest in building fast in property Vietnam market – with beautiful beaches, amazing food, a thriving economy and competitive pricing, it’s no wonder that the coastal county is Asia’s biggest property investment hotspot
A thriving national economy coupled with low market entry prices makes for a compelling proposition, and after the game-changing amended Law on Residential Housing opened the door to opportunity in 2015, property Vietnam began making headlines as the new property investment hotspot in Asia.
The relaxed rules enabled foreigners to buy up to 30 percent of the units in each new residential project, a quota which Kenny Law, of Savills Hong Kong, says was quickly filled by investors from Hong Kong, South Korea and mainland China. “Wealthy overseas Vietnamese represent another enthusiastic group of investors,” he said.
Such has been Chinese buyer enthusiasm that, from virtual obscurity in 2015, property Vietnam now consistently ranks on Juwai IQI’s 10 most popular countries list.
Georg Chmiel, Juwai IQI executive chairman, says Chinese investors see in Vietnam’s cities the next Shanghai or Beijing.
“With Vietnam’s economic and demographic outlook, they fully expect prices to climb significantly in the years to come, while remaining safely decoupled from real estate price trends in China itself,” he said.
Chmiel added that in the past two years Chinese investors have shown an increasing preference for real estate in Asean markets; from their perspective, “Vietnam has it all”.
As Juwai IQI points out in a Vietnam market research report, condo prices there are tantalisingly affordable. It found that a high-end property in central Ho Chi Minh City costs US$3,000-6,000 per square metre while its equivalent in Bangkok costs around US$7,000-9,000 (HK$54,257-69,760), while in Hanoi and other coastal cities, “properties are even cheaper”, starting from US$109,800 for a semi-luxury home.
Hang Dang, managing director, CBRE Vietnam, agrees that Vietnam offers a wide range of high-quality products from both local and foreign developers.
Examples include Empire City, Palm City and Celesta Rise by Singapore developer Keppel Land, which sold 950 homes in Vietnam in 2019; CapitaLand’s Feliz en Vista and d’Edge Thao Dien in Ho Chi Minh City; along with the upcoming launch of The River Thu Thiem, The Opera Residence, Lumiere Riverside in District 2 and Vinhomes Grand Park in Thu Duc New City, all in Ho Chi Minh City; and Vinhomes Smart City, Vinhomes Ocean Park, Gamuda City and Ecopark in Hanoi.
“The checklist for buyers should take into account project location, developer brand/track records, legal documents, constructor and project management team,” she said.
“In recent years, property management has become increasingly important, especially following the Covid-19 outbreak,” Hang continued. “End users and investors now expect higher standards of property management, with CBRE anticipating increasing demand for better sanitation practices and attention to other hygiene-related issues. Together with high quality construction and timely handover, professional property management will be critical to shaping a developer’s reputation and generating future sales.””
Source: From Journalist