Gateway Thao Dien apartment in District 2

The figures are a 50% increase on the equivalent period of the previous year.  The first half of 2014 saw $1.13bn FDI enhance the market, itself seen at the time as an encouraging figure.

This new money coincides with wider investment trends in construction of new property and infrastructure, particularly in areas around the country’s economic capital, Ho Chi Minh City.  The construction of new retail and commercial units, on top of transport developments such as the new Metro line, are said to be worth close to $9bn dollars – with even better figures expected in the latter half of the year.

The figure of $1.69bn, released by the Ministry of Planning and Investment, covers the year until the end of June.  Crucially, this was the period immediately before legal changes, allowing foreign individuals and companies to buy property in Vietnam, were enacted on the 1^st of July – an act expected to dramatically increase the inward flow of overseas capital. 

With pre-changes FDI accounting for around 19% of the year’s new money, experts are predicting an even greater upsurge in interest from overseas buyers.

Asset ownership opportunities

Industry leaders are suggesting that foreign businesses – already attracted to Vietnam due to lower labor costs and capital investment requirements – will be further enticed by the prospect of fully owning production units such as factories and warehouses.

CBRE Vietnam is one such leader backing the claim of Vietnam’s increasing appeal to overseas enterprises.  Mrs. Nguyen Hoai An, VP of research for CBRE, says “The potential ROI (return on investment) for businesses taking root in Vietnam is substantially higher than key regional competitors.  Such large-scale expansion and economic repurposing, as is happening in the east of HCMC, just isn’t possible in space-restricted island-states like Hong Kong or Singapore.  Additional asset ownership opportunities simply sweeten the deal for wavering speculators.”

Residential property benefit

The $1.69bn in FDI is focused 22 new or extended projects.  These include Empire City in District 2, a collaboration involving the Government, local investors and the UK’s Denver Power Ltd.

Sala apartment, opposite to Empire City in District 2

In addition to increased interest from foreign and Viet Kieu individuals, attracted by law changes allowing their legal ownership of property for the first time, developers are also banking on increased buying power from the growing number of upwardly-mobile locals.

“The volume of new entrants into the Vietnamese middle-classes is continuing to grow”, said Mrs. Nguyen, “and the luxury segment of the real estate market is expected to become even more profitable.  The relative stability of the economy in the face of regional turbulence – buoyed by closer economic ties to the West through TPP – is facilitating more local entrants into the high-end sector.  Even those wealthy enough to purchase in competing cities, like Bangkok or Kuala Lumpur, are choosing HCMC instead because the initial investment cost is just so much lower in Vietnam.”

As the first figures from the second half of 2015 – the period following changes allowing foreign property purchases in Vietnam – emerge, we’ll be offering exclusive coverage.  Keep in touch with us to hear all the latest news and commentary on the Vietnamese property market.

VietApartment NEWS

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Second chance for you to buy Estella Heights apartments in District 2 in October, 2015.

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The expansion of the city has seen investment from authorities, foreign speculators and developers to the tune of $8billion up to the 3^rd quarter of 2015.  Beneficiaries include:

• Transport improvements in the areas between Saigon Bridge and Vung Tau, including highway and bridge improvements, account for $3billion.
• New luxury units – around 40,000 individual residences – are under construction in Binh Thanh, Thu Thiem and District 2, with an estimated worth of $5billion.
• 300,000sqm of retail space are on their way in the same areas, as well as Thu Duc and District 9. Upon 2018 completion, experts predict a valuation of $300/1sqm for a total of $90million.

The Sun Avenue Apartment of Novaland developer in District 2

Experts excited

The estimates have emerged from reports by industry experts and observers.  One such company, who put forward the transport development figure, are Global Investment and Business Corporation (GIBC).  “We think this investment will result in a relocation of the city’s commercial and service sectors into these purposes built areas” said Mr Huynh Phuc Nghia of GIBC.

Another real estate expert suggested these investments represent a golden opportunity for investors.  “The follow on benefits from the $3billion infrastructure improvements are likely to be upwards of $5billion as additional commercial, recreational and educational ventures flock to the areas”, said University of Economics lecturer Ngo Dinh Han.

“The current central districts for these areas are saturated, and new additions like Thu Thiem Channel, Thu Thiem Bridge 1, Saigon Bridge 2, and Thu Thiem Bridge 2 are ideal in relieving some of the bottlenecks” continued Mr. Han.  “These new areas will also connect the city with outlying provinces, creating a greater metropolitan area, radically altering the shape of the city over the next decade.”

Connectivity to Saigon’s current central districts will be aided by completion of the Metro system, in addition to a new financial center in Thu Thiem.  Upwardly mobile Saigoneers may turn their attention to big new developments like Vinhomes Central Park and Sala premium residential areas over the next 2 years.

Such a churn of development leaves plenty of opportunities for investors, with prices in the new areas estimated at a quarter of D1/D3 equivalents.

Estella Heights apartment from Keppel Land and Tien Phuoc Developers

Some skepticism.

Not everybody is as taken with the sales pitch, however.

General Director of Viet An Hoa Company is one such skeptic.  “$8billion is an attractive headline number, but may not be entirely accurate.  The $3billion is in place but may not do the job of radically improving regional connectivity, while the rush to providing 300,000sqm of additional commercial space may lead to over capacity.”

He added some particular concerns of over-subscription in luxury development: “The market should be rebalanced.  Right now the rush is to provide high-end accommodation but the value of such construction should be spread across varying segments to accommodate eventual variations of demand.”

Whilst District 2 and Binh Thanh, he concluded, can provide valuations of up to $2000/1sqm which hold up, developments in Thu Duc and District 9 should be focused on sub-$100k/unit offerings.

What do you think?  Let us know in the comments below

VietApartment NEWS

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Riverside and luxury Vinhomes Central Park apartments of Vingroup developer are open to sell The Park building in this September! Register now to have the best apartment!

At a housing conference, the market’s appeal to overseas investment was a hot topic.  There was broad consensus that overseas Vietnamese (Viet Kieu) would be attracted to their country of origin, but less agreement was found on the other new sector of the market: non-Vietnamese foreigners, particularly those that live here and rent currently.

Gateway Thao Dien – Hot and luxury apartment in District 2

Recently conducted research didn’t offer any knockout news for those on the fence, but did confirm that prices are far lower than other regional hubs like Bangkok and Kuala Lumpur.

Much cheaper

In fact, the comparison with neighboring countries was stark.

A ‘standard’, non-luxury apartment in Ho Chi Minh City can start at around $30,000, while similar units in Bangkok, Hong Kong and Manila go at around ten times that rate with median prices at around $300,000.

A cross-section of comparable properties also came out in Ho Chi Minh City’s favor:

In every category, ticket prices in HCMC were considerably lower than counterparts in Bangkok, Jakarta and Manila, ASEAN competitors for foreign investment dollars.

Price and affordability

At the ‘luxury’ end of the scale, average prices again come way under other regional metropoles.

CBRE specializes in research on property worldwide.  A recent report of theirs shows that the average price of luxury apartment in HCMC around $1781 per square meter, (around $178000/unit at 100sqm). Similar apartments in Singapore, Shanghai or Malaysia it cost around $500,000 to $600,000.

Whether these substantially cheaper prices will rise over the next 5-10 years, thus offering greater value to speculators, is questionable – as is any declaration that low prices equate to high value.

What is insightful however is Vietnam’s position in the affordability index.  It suggests that there is scope for locals to invest in first or upgraded homes with a greater degree of ease than some neighboring countries, with average incomes rising and capacity at a favorable level for buyers.

Surveys by market-leading agents like Savills received mixed responses when seeking opinions about current prices.  It came to no conclusion about whether the overall perception that costs were ‘cheap’ or ‘expensive’, but did find common optimism that the market will favor early investment in the first months following permitted foreigner purchases. “The market is still emerging, still taking shape – but all the indicators are that Vietnam’s appeal to foreign businesspeople, investors and professionals will increase substantially over the next decade.” Said Mr. Troy Griffiths, CEO of Savills Vietnam.

The highest-end offerings in the market represent the biggest bargain – and the biggest opportunities for growth, say some leading experts.  Mr. Peter Ryder, “The luxury segment retains very high potency.  Prices are incredibly good in comparison with other cities, averaging around $2900/sqm here in Saigon versus $20,000/sqm in the top-line Bangkok and KL equivalents.”

What do you think?  Got any thoughts on property prospects to share?  Leave a comment below or get in touch for any questions or feedback on the Vietnam property market

VietApartment NEWS

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[HOT] Project Estella Heights Apartment in District 2 will be opened to sell second stage in this September after a successful first stage.

Register now to have reservation and visit showroom! Thank you!

The Vietnamese property market is making genuine progress following stagnation issues which culminated in 2014.  The progress may be skewed, however, by speculators stockpiling property in the hope of creating the illusion of limited capacity in some developments.  Collusion between suspect agents and developers are being condemned by key real estate associations, who are angry that bad practice by the few is harming the reputations of its members.

The Sun Avenue Apartment (Novaland) in District 2

End-purchase customers are seeing prices jump by as much as 800mVND on a previously unoccupied residence as speculators manipulate the ‘early-bird’ market.

Mr. Tuan Anh, a real estate investment analyst, said: “Developers are keen to get buyers in as early as possible, and openly offer ‘first stage’ prices.  Many of these are snapped up by speculators, sometimes even before the official selling period has begun, with the sole aim of selling the property during the second stage.”

Typical ‘early bird’ prices can begin at around 26mVND per square meter, while secondary offers begin at around 28mVND.  Publically, the public and long-term investors are the intended beneficiaries of preferential early investment, but in reality short-term speculators are reaping the benefits.

“While this kind of speculation is frequent in every market, it’s unfortunate that developers are colluding with it by, firstly, promoting ‘early bird prices’ knowing the supply is more limited than their claims, and secondly, trumpeting early sales as a sign of a projects popularity.  This is an artificial boost to second stage interest, and is quite discomforting.”

Too many brokers

Industry representatives echo this disquiet.  General secretary of the Vietnam Real Estate Association (VNrea), Tran Ngoc Quang, is particularly concerned at the negative impact at a time – following the laws of July 1^st – when efforts to attract overseas investors are showing early signs of success.

“Customers are being faced with a barrage of disreputable agents and bad practice, who are inundating enquirers – here and overseas – with repeated pleas to invest in property they know to be inflated in value.”

Approaches by text message are becoming a real cause for concern.  One unhappy recipient, Mr Viet Dung of Hanoi, reports receiving “many messages from strange numbers at all hours of the day, even after midnight.  It’s so persistent, and impacting my sleep, making me feel terrible.”

Electronic inboxes are flooded with equal frequency.  Ms Thuy Hang, also of Hanoi, receives “on a regular basis 15 new messages each time I check my email, many of which offer adjoining or identical properties for varying prices.  It really distorts any interest I had in the first place.”

One developer, who wishes to remain anonymous, distanced himself from such practices while acknowledging their impact:

“Value is high when demand is high.  This kind of practice doesn’t generate demand for the market as a whole, and so disappoints us greatly. The problem is with individual brokers.  For them, it works: they can send thousands of messages to unsuspecting would-be customers, and if they generate even 1 or 2 sales, they’re very happy.”

High brokerage costs

The overall effect is disorientating for would-be buyers.  One such potential homeowner, Mr Tuan of Tay Son-Dong Da, is feeling pressured and misled:

“Every day, I get calls from brokers with different prices, most of which are ascending.  Over the last 2 months, quotes have increased by as much as 3mVND per square meter.  But it doesn’t take much digging to discover they are pushing apartments which have remained unsold the whole time.  It’s bizarre.”

Estella Heights apartment will be opened to sell second stage in this month

The overall health of the market has been trumpeted recently.  The first 4 months of 2015 saw the Ministry of Construction record 5850 transactions, 2.5 times the same period in 2014.  April alone accounted for 1600 completed sales, a 10% rise on the previous month.

Though sales have genuinely seen an upturn in the last year, one Hanoian expert suggested the numbers were inflated by dubious means. “Distributors and brokers are responding to many queries with ‘sorry, sold out’, to create the impression of high demand and inflate short-term prices.”  He went on to say “It’s a pointless inflation – we know these projects are making a healthy number of sales per day, but the announced figures are often magnified two or three fold.  It’s unsustainable and will hurt their projects in the long run.”

All buyers are being subjected to such tactics, but fears are that foreigners and Viet Kieu (overseas Vietnamese) will bear the brunt as they are unfamiliar with the local market.  All buyers are urged to work with reputable agents who are verifiable by trade associations such as:

Hanoi Real Estate Association
Ho Chi Minh City Real Estate Association
Vietnam Real Estate Association

Keep up to date with advice and information as changes to this emerging market take shape.  If you have any question about Viet Kieu and foreigners buying property in Vietnam, get in touch today.

VietApartment NEWS

(Any reproduction of this material by any means, in whole or in part, is prohibited without written permission from VietApartment.com)

Estella Heights -new project in District 2

As of August 9^th, any new development must be guaranteed financially before a project is due to commence.  This updated guidance is seen as a move to reduce perceived risks from overseas investors, who were granted new rights to legally purchase property for the first time on July 1st, 2015. 

New circular

Institutions have acted following a spate of litigation by disgruntled buyers of projects which weren’t delivered on time.  The State Bank’s updated guidance, emerging from Circular No. 07/2015/TT-NHNN, requires certain conditions to be met before a purchase or a project can be ratified.

Guarantees for buyer, developer and lending institutions must now be made clear and transparent before a purchase is recognized.  Should either buyer or developer fail to meet their obligations, the lending parties will be liable to pay full compensation, including re deposits and advance payments.

While it’s expected that additional cost burdens related to securing guarantees from commercial bank may be reflected in marginally higher prices, the aim is to make the property market a more transparent and credible destination for foreign capital.

A bigger role for banks

It’s hoped that asking more of commercial banks will ensure projects are better managed throughout the development phase.  Banks who previously issued lump-sum loans to developers were often left with debts and write-offs, whereas under the new stipulations, commercial banks have an active role in ensuring money is treated correctly through a project’s lifetime.

Lending banks are expected to perform more stringent diligence on a developer’s financial capacity, project feasibility and market conditions before sanctioning contracts.

Masteri Thao Dien apartment will be finished in 2016

Timely delivery and industry credibility are expected to be boosted by these measures, attracting further investment interest from foreigners.  Financially insecure developers are likely to fall by the wayside, which while impacting ambitious start-ups will make the market healthier as a whole.

Overseas Vietnamese (Viet Kieu) and foreign investors will also benefit directly from the Circular updates, with pressure put on the banks to make it easier to access loans in-country rather than requiring guarantees solely from abroad.  Buyers purchasing from established developers with good reputations will also be rewarded, as trusted partners are likely to be offered a lower guarantee fee than less credible competitors.

Get in touch

We’re here to help foreign investors and would-be homeowners make sense of this emerging market.  If you are interested in buying property in Vietnam, contact us with any questions or subcribe our newsletter here.

VietApartment NEWS

VietKieu (a term meaning “Vietnamese sojourner”) from Western countries are being pulled back not by sentiment – but by promises of substantial returns.

Mrs. Hoang is one such VietKieu.  Living and working in the UK has helped her generate capital, but investment prospects in England remain minimal: “I decided to buy this villa because of savings interest of 1.5% per year in England is too low, even without additional taxes of 20%. While I buy villas in Vietnam and I am in commitment from developer the profitability of 8% in US Dollar, much better than”.

The Villa she bought in PhuocTinh, Baria-Vungtau Province has an ocean view, and at for $230.000 represents a fraction of the cost of a similar property in England.  Her investment is a direct result of the law change which came into force on July 1^st 2015.  The law now protects VietKieu enabling them to buy property in their own name, with a lower threshold of ‘proof’ required of Vietnamese heritage.

She is far from alone in responding quickly to the changes.

Oceanami villa resort project in Vungtau price from $175.000

A group of VietKieu based in Eastern Europe recently registered 7 sea-facing villas in Bai Dai, Phu Quoc.  “In Phu Quoc, many developers strongly commit to high returns thanks to growing demand and infrastructure development on the island”, said Mrs Thuong, who represented the group. “The new law made it even more attractive to us to get on board early.”

It’s not only seaside views that are attracting the VietKieu. City apartments – especially at the high end – are proving noteworthy to new buyers.

Mr. Trung, was born in Vietnam 40 years ago but has lived and worked abroad for 2 decades.  He recently bought a luxury apartment in the Goldview project, Ben Van Don St, Ho Chi Minh City, worths nearly 3 billion VND ($140.000).

He took his decision in July, attracted by the promises of high ROI. “I’m likely to make a profit in the longer term through value alone”, he said “but in the interim, I can still generate a 6% return through rental.  It’s very good deal”.

The Sun Avenue apartment, hot project of Novaland in District 2

Novaland, one of the bigger developers of Vietnam, released a report in 2015 claiming VietKieu accounted for 10% of all new sales, with contracts being exclusively pursued in the high-end luxury segment. The Phu My Hung Company meanwhile recorded more than 100 transactions from Vietnamese overseas, though figures may be even higher:

“Before this law change, VietKieu often bought in the name of a relative.  With the new real estate law extend for foreigners and Vietkieu, transactions under their name will significant raise in the near future”, said Mr. Truong Quoc Hung, adding: “Phu My Hung is a new part of Ho Chi Minh City, so we have a good idea of who has been living here.  We’ve recorded a number of nearly 30.000 residents and 50% of them are foreigner and VietKieu. The law change makes these numbers even more compelling.

It isn’t just Western money that VietKieus are bringing back.  Many emigrants based Hong Kong and South Korea have been buying up property at the City Gate projects on Vo Van Kiet, Ho Chi Minh City, at prices of  1 to 1.2 billion VND ($55.000), or 16 to 18 million per square meter.  The law change means at this project the current number of 20% VietKieu ownership already recorded could rise even more quickly in the near future.

Mr. Nguyen Xuan Loc, director of Techcomreal said: “There’s no doubt that the policy change from the Government has been hugely influential.  It solidifies the notion that foreigners bring profit just as much as native transactions, and has created many new customers, particularly in Villa Resorts, Luxury apartments and offices, particularly in Districts 2, 7 and 9.”

The common feature of this type of asset is the ability of creating return (rental and residential). Mr. Loc said that there are three reasons for Vietkieu to come back to mother country and buy property this time.

The first one is the local attractiveness of real estate in Vietnam, which is in the post-crisis phase and has just entered a new stage of recovery. Currently, the market is growing with a young population and excellent economic prospects, meaning in financial terms, it’s a good place to put their money.

The second reason is the reassurance from the government regarding the legality of their ownership.  It makes the market more transparent, meaning a greater level of clarity regarding overall market prospects.

Estella Heights of Keppel Land Singapore

The last, but not least is timing: the legislation coincides with the arrival of newly successful entrepreneurs returning home from United States, Eastern Europe and some Asian countries. Many young Vietkieu investors are coming to Vietnam and invest in good location apartment and luxury apartment purely as an asset for a return. The previous generation are buying in resorts to make new homes on their return to the motherland.

Not even 2 months have passed on the enactment of the new law, and much significant data is yet to filter through, but things are already looking very positive.

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Compiled from VnExpress
VietApartment NEWS

Tien Phuoc is known as real estate developers with large projects, but the most of alls cooperate with Keppel Land-a leading real estate group of Singapore, and such projects usually known as Keppel Land projects brand.

Even the project Empire City, there is also as cooperation between Tien Phuoc and Keppel Land to develop construction. In 2012, the project have been approved by HCMC People’s Committee for Tien Phuoc -Keppel Land as developers. It is built on Lot 2B land in Thu Thiem urban area –  a combination of commercial centers, offices, apartments, hotels, … especially 86-floor observation tower. At the moment, Keppel Land has now withdrawn from this project.

Tien Phuoc was founded in 1992 by Mr. Nguyen Thanh Lap. He was born in 1950 in HCM City – currently the Chairman of JSC Tien Phuoc, also the Chairman of Management Board Nam Rach Ltd. (a joint venture between Thai Tran – Tien Phuoc -Keppel Land). All companies are investing in many large real estate projects in HCM City.

Projects of Tien Phuoc are often placed in Districts 1, 2, 5, 9, 12 and Binh Chanh district, nearby Binh Duong, Binh Phuoc, Ba Ria – Vung Tau, Khanh Hoa provinces. After 23 years of development, the company now has a chartered capital of 860 billions Dong.

Empire City is just one of many projects that the giant real estate company has invested in self-building or cooperate with foreign partners. In particular, especially the period 2010-2011, this was also the period Tien Phuoc have plenty signings with Keppel Land.

The first large project of Tien Phuoc in HCMC is Phu Binh Khanh resettlement. Phu Binh Khanh was built in 2009, by Nam Rach Ltd. as an investor, with the scale of 1,844 apartments on a 3,6 hectares land area. On June 2011, there were 512 first apartments handed over, in 2012 with additional 620 apartments.

However most well-known one is The luxury project named Estella and the luxury villas along Saigon River.

The Estella 1393 apartments placed in District 2, which has completed progress 1 and ongoing investment in progress 2 (Estella Heights) on an area of 2,54 hectares , including 496 apartments with 33 floors tower, priced from 36 million Dong per square meter ($1.800), scheduled to complete in 2017.

Estella Heights apartment in District 2 opened to sell 2 last buildings in this September

Tien Phuoc and Keppel Land is currently under cooperation in many high-end real estate projects such as Nam Rach Chiec 30 hectares, by Nam Rach Ltd. as an investor. The total project investment is 38 millions USD, of which 42% Keppel Land, 38% of Tien Phuoc and 20% Tran Thai. The complex project among the river is expected to create a new community with 4,700 apartments.

By late 2010, Tien Phuoc and Keppel Land has continuously signed many cooperation contracts to build villas along the Saigon River. Including that is 225 villa apartments in District 9 which has total investment of 115 millions USD. Tien Phuoc invest 50% and Keppel Land 50%. Besides, these 2 great companies has another cooperation to complete a riverside villa of 11 hectares with 175 units.

Mega Villa of Khang Dien just 500 meters from Long Truong Project of Tien Phuoc

Besides the cooperation project with Keppel Land, Tien Phuoc has also implemented some specific projects such as Long Truong in District 9 with 43 villas and the Greenfield Village with 18 apartments.

Empire City project is an ambitious project of Tien Phuoc. According to the representative of Empire City, the company will arrange financing with best interest from foreign financial institutions and use of Vietnamese human resources is key to developing and operating the project.

VietApartment NEWS

In the first half of 2015, the Vietnam real estate market of apartment for sales has a sharp breakthrough, especially the supply of opensales projects. According to the statistics, 13.000 apartments are opened for sales in the first half year. This amount is equal to the supply of the whole 2014 year. In forecast by experts, The supply of the whole year would become over the strong growth period in 2006 – 2010.

Ms. Do Thu Hang, Head of Research and consultancy department of Savills Hanoi has answered around this problem.

Despite of a large amount of apartment for sales in the market, there is still a phenomenon of increasing price after every open sales ceremony of the developers. In your opinion, what is the reason for this problem?

We realize that recently there is large amount of apartment for sales. In detailed, it is about 7.000 units in 1st Quarter (the consumption rate is 40%),  6.000 units more was added in 2nd Quarter from 27 different projects. So, the total amount is about 13.000 apartments.

There are some developers consider about the quantity of apartments after each sales opening, or consider to increase apartment prices periodically. In my opinion, it is their business strategy. Only projects with good location or high reputation investors could raise prices.

Do Thu Hang, Head of Research and consultancy department of Savills Hanoi

The fact of speculative trends have returned to the real estate market. According to you, what is the impact of this trend in ̉ the rest of this year, 2015?

Currently, it’s a really big number of speculative investors in each project. Real demand is still there but not equal to the amount of speculators and investors. We think that this may cause some consequences. When a speculative investor buy a house, they expect the house price would raise in the future. And this will lead to the price increasing in the future of whole market. However, we don’t need to worry so much about that due to the big number of products in the real estate market, even the buyer with speculative purpose will meet that problem and should consider carefully.

We predict that many transactions to be made in the rest of 2015. However, the speculative factor may distort demands.

The real estate market has a sharp recovery at this time. The supplies and credit increases 11% compared with the same period last year. So, according to you, would it occur the real estate bubble or not?

Looking at the short term, in recent, the market reached its bottom and had a fast recovery. We realize that the transactions in 2015 are in the high level. The fact that Transactions in the first half 2015 are the same with the whole 2014 may lead the whole year transaction to be over the developed period in 2006-2010. Recently,  construction progress become so fast and the buyers turn to worry about, especially the bank ensure the construction progress for the buyer after the first of July.

Estella Heights apartment of Keppeland will be opened for sale second stage in this September

However, the market just become better this time, so in the short term there can’t be a bubble. Besides, there are so many apartment for sales, about 8.000 units and would be significant more in the future. The supplies would be enough for the demands. Customer needn’t have to dispute on the supply that makes the price goes up. So, there are many factors indicate that there won’t be any bubble in the next time.

VietApartment NEWS

Literatured from CafeF

Talking to the media at the meeting to announce the program “Comeback Homeland Spring 2015”, Deputy Minister of Foreign Affairs Vu Hong Nam said, from the law of housing amended on, there were 7.000 oversea Vietnamese owned a house in Vietnam. “With the environment for investment, business is gradually improving, the changes in approaches of the law-maker…pulled oversea people back to their homeland more and more”
Results from the Research Institute for Economic Management TW (Minister of Planning and Investment) and Western Union conducted at the end of 2014 said, a remarkable portion of remittances sent back to Vietnam used to buy real estate.
Total of remittances in 2014 reached 12 billion USD. 16-17% flowed into real estate market.

Estella Heights apartment in District 2 attracts many Vietkieu’s attention at the moment

Vinhomes Central Park apartment residence is one of great choice for foreigners in Vietnam in 2016

Commenting on the changes in housing policy in Vietnam, Richard Leech, Executive Director of CBRE Vietnam, the conditions for foreigners to own houses in Vietnam more open than the previous forecast, which marked an important step in opening up the real estate market for foreign investors. The two provisions are limited only to the foreign ownership period not exceeding 50 years and the amount of property owned up in an apartment building / a ward-level administrative units (or equivalent equivalent). In addition, there are no limits on property ownership permitted. Answering the question, whether or not a wave of overseas Vietnamese and foreigners poured money to buy real estate in Vietnam when the Housing Law (amended) effective from 01.07.2015, Richard Leech said that may Law no immediately impact, but it definitely makes the housing market has improved recently went towards more positive.
“Housing Law amendment will help Vietnam market becomes more attractive for foreigners living and working in Vietnam, who want to invest in this market and erase the initial barriers, create a more fair playing field between foreigners and people of Vietnam, “said Mr. Leech.

Compiled by VietApartment NEWS

Literatured from Vietnamnet