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

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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!

Though the broad legalities sanctioning property sales were brought into force on July 1^st 2015, expected circulars and decrees to offer guidance on their application have yet to be published.  Domestic real estate developers and agents are urging the Government to accelerate publication to negate any market uncertainty.

The Sun Avenue in District 2, hot project of Novaland

Chairman of the Basico Law Company, Luong Thanh Duc, is clear that the new law allows all foreigners and organizations who enter Vietnam legally to buy property if they wish – but detail on regulating some of the finer points is still to be clarified.

Of particular concern is the limitation in the law stipulating foreign ownership may only account for “250 houses or 30% of an apartment block” in any administrative ward.  Mr. Duc is still unclear as to who will “monitor and manage this stipulation, and keep vendors informed about whether that ward can allow the sale.  If parties proceed under this cloud and then the contracts is voided in such a circumstance, how will this be handled?”

Mr. Le Hoang Chau, chairman of Ho Chi Minh Real Estate Association (HoREA), is buoyant about the impact of foreign ownership in his constituency.  He too, however, would like to see questions answered by the government – and sooner rather than later.

Specifically, further detail is needed on definitions of “Viet Kieu”, Overseas Vietnamese who, in the same law, were granted the same property rights as their resident relatives.

“In practice, many Viet Kieu – particularly 2^nd or 3^rd generation – may not have any extensive documentation outlining their heritage.  We’d like the Government to confirm that documentation acquired from the Viet Kieu’s host country is sufficient to enjoy the benefits of the law.”

Regarding the provision limiting sales to foreigners by ward, he said the industry would like to see rational flexibility applied to account for natural migratory demand.

“It’s natural that communities of expats form over time.  We’ve seen many foreigners cluster together in Hanoi, Da Nang, Khanh Hoa, Hai Phong, Binh Duong, Dong Nai, and Thanh Hoa.  In Ho Chi Minh City, foreign demand is highest in Tan Phong Ward, District 7, Thao Dien Ward, District 2.”

Gateway Thao Dien, luxury apartment for foreigner in District 2

Some members of HoREA have also suggested that, to protect domestic supply to local low and middle-income families, restrictions on ownership in these areas are limited to properties starting at VND 21 million/1sqm($1.000/1sqm), although there is little prospect of this being applied.

Mr Nguyen Huu Cuong, chairman of Ha Noi Real Estate Club, agrees that percentage flexibility should be applied.  “In Ha Tinh province there are a lot of foreigners already, so we expect to see big demand in this area which we hope the Government will allow us to meet.”

Exemptions in the law apply to areas controlled by the Defense department, and Mr. Cuong considers extension of this provision be applied to areas in close proximity to key facets of national and civil defense, such as airports, sea ports and other sensitive geographic areas.  These need to be established to allow thorough transparency.

With the legislation being so new, there is little data yet on how property laws surrounding foreigners will complement laws on immigration and residency.  He cites the United States and Canada “which allow foreign ownership but separate this from residency rights.  We’d like more information on the separation of these in Vietnam to best inform buyers.”

In the meantime, enterprises and associations are urging that prospective buyers keep in touch with reliable agents and advisors to stay in touch with expected developments.

Want more information about buying property in Vietnam?  Need to know more about your legal right to purchase as a foreigner?  Then get in touch today.

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

Besides, for those who have permanent address, confirmation for temporary residence, or stable work in District 1 could have 1% more in price discount.

We also give The Sun Avenue Apartment buyers from North 1% contract value, included roundtrip airfare ticket for sightseeing project.

The Sun Avenue Apartment from Novaland developer in District 2–  very hot project at the moment

The Sun Avenue Project has 500m frontage stretching on Mai Chi Tho Street, located in Thu Thiem area, District 2, HCMC (where Sala Premium Residence is in). The architecture partner of Novaland and Junglim Company group has collaborated to complete the design outline for complex apartment, commercial, The Sun Avenue service in a green space, ventilation, suitable for both residential and business needs of residents.

With modern design ideas, The Sun Avenue Apartment is so much harmonizing for the new Thu Thiem urban area. The Sun Avenue apartment are clearly divided into functional areas. So that accommodation will separate, ventilated and vision is not restricted by buildings and allow every resident can see the Saigon River.

The building stretches over 500m straight line along the front part of trade under the podium and the dome with advanced technology will be linked to form an inter-trade zones. This formed a food court, entertainment, bustling shopping modeled Clarke Quay area of Singapore. Residents here can be both homeowners and commercial owner for business or for rent.

In addition, within the framework of a special program “The first 100 apartments welcome Overseas and foreigners” by the Group Novaland deployed, customers are overseas Vietnamese and foreigners to buy apartments The Sun Avenue was offered a lease commitments package 8% of the contract value in the first year, gift package management services in interior finishing stage and return air tickets to visit the project. Besides, there have committed to complete the purchase price plus interest incurred if within one month from the time the customer has not satisfied the product.

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The Sun Avenue Apartments

is located at the “gold” position of intersection of Mai Chi Tho Avenue and Dong Van Cong road in District 2. At the present, these roads are belong to one or two largest routes of the city. These routes plays an important role which is compared to the basement for economic development of the city. Just as these description, the area where The Sun Avenue Apartment is becomes the center of the real estate “storm” which is caused by the new Thu Thiem urban and a series of key projects are being accelerated construction. This is also the foundation for the development of residential projects

The Sun Avenue

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LOCATION

The Sun Avenue Apartment

at front of Mai Chi Tho, An Phu ward, District 2, Ho Chi Minh City, is located in the center of administrative Thu Thiem and stretches over 500 meters frontage of Mai Chi Tho Avenue. The Sun Avenue owned an advantageous regional location convenient for transportation. It is connected by the network of transportation of “arteries”: Long Thanh – Dau Giay highway, city inner belt-way in direct connection with the Thu Thiem tunnel to the center of District

The Sun Avenue Apartment also possesses outstanding design of ventilation, ensuring unrestricted visibility and various internal facility, ensuring strong added value over time.

A number of notably key transport projects in District 2 can be referred to as: Xa Lo Ha Noi Highway, road extension of Dien Bien Phu Street which starts at Saigon Bridge connects District 2 to the east District like District 9, Thu Duc district, and other eastern provinces. With this route, people will easily take a quick moving from District 2 to the adjoining districts like District 9, Thu Duc District, Binh Thanh District. Being designed with modern harmony with nature gives The Sun Avenue Apartment always get natural light, pure and fresh air … give you a overlooking beautiful view, airy space with modern luxury design.

Second route is Mai Chi Tho Avenue (route connecting the east and west of Saigon) make traffic becomes extremely convenient when moving from District 2 to District 1 in center via Thu Thiem Tunnel. With convenient transportation, inspired by some model apartment in Europe, Novaland firmly develops The Sun Avenue Apartment to be a luxury complex apartment in Ho Chi Minh.

Viet Apartment.com NEWS

Novaland Group is a joint stock company whose activities specialized in the field of Investment and Real Estate Development in Vietnam. As an investor has wealthy financial background, high reputation and firmly success in the market with several famous project: River Gate Apartment in District 4; Tropic Garden Apartment in District 2; Lucky Dragon apartments in District 9; Sunrise City Apartment in District 7; Lexington An Phu in District 2; Lucky Palace apartment in District 6; The Prince Residence in Phu Nhuan District; Galaxy 9 and Icon56 Residences in District 4

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