Saigon Center at Tet holiday

As of July 1^st 2015, foreigners with valid Visas can now buy a house, apartment or building anywhere in Vietnam.  This is the first time property has been made available to foreigners without family ties to Vietnamese nationals.

Though there is broad availability, some limitation on supply exists: in each ward (or Phuong) 250 houses, and 30% of apartment blocks are available to foreigners.  New developments are being built to increase capacity and cater to foreign tastes and standards, and prospects for growth – thanks to pro business legislation and infrastructure investment – are excellent.

Who can buy:

Previously, only blood relatives of Vietnamese nationals and foreigners married to locals were permitted to buy property here.  As of July 1^st 2015, property is now available to:

• Foreign nationals with a valid Vietnamese visa of one day or more.
• Foreign investors and companies registered in Vietnam
• Viet Kieu: people of Vietnamese birth or descent resident abroad.

What are the conditions?

The Vietnamese constitution states that all land is owned by the state.  The property on that land is purchasable, however.  The terms will initially be for up to 50 years, with an extension of 50 years thereafter.  Rights of sale after expiration of the term are guaranteed on a free-market basis, meaning equity can be retained.

About the Vietnamese property market

The market has a strong cost to growth potential ratio, given the stability of the Government and its commitment to attracting foreign investment, particularly in comparison with saturated and politically uncertain neighbors like Thailand and Malaysia.

Though there has been a slowdown, growth – unlike in many Western countries post-2008 – has continued.  The economy, driven by manufacturing and exports, grew at a rate of 5.98% GDP, with growth of 13.6% expected by 2025.

What parts of Vietnam are attractive to foreigners?

Foreign attention is focused on areas rich in commercial possibility:

• Ho Chi Minh City, commercial and investment capital of Vietnam
• Hanoi, seat of government and cultural center
• Nha Trang and other coastal regions popular with foreigners (Russians in particular) and local tourists
• Phu Quoc, an island primed for vast commercial and tourism investment
  
  

  Ho Chi Minh City overview                      

How much is a typical property?

Prices are competitive but vary according to type, style and location:

Homes and villas:

Typical 3-bed family homes come in at

• Ho Chi Minh City: $50,000 to $250,000
• Nha Trang: $50,000 to $ 100,000
• Hanoi: $100,000 to $300,000

Around $1.000.000 to $1.500.000 buys a luxury, 5-bed property.

Apartments

A Western-style apartment with 3 bedrooms in a new, purpose-built development starts at Ho Chi Minh City: $50,000, rising to $150,000.  Other units consider luxury apartments begin at $250,000.

Beautiful riverside Saigon Pearl apartment price from $100.000

How does this compare with neighbors?

Neighboring countries are seeing lower growth prospects and overheated real estate markets.  Other ASEAN governments are seeking to limit rather than encourage foreign ownership.

In Bangkok, prices can start at around $1million for a condominium, while at the lower end foreigners are required to invest a minimum $250,000.  Investors have seen a yield of as little as 5% as the Thai economy suffers a prolonged period of low growth.

In Kuala Lumpur, a similar minimum of $250,000 is required for foreigners to invest in the market, while in Indonesia there are substantial hurdles for any foreigner to buy property.

What else should an investor know?

There is a genuine upward curve to Vietnamese investment prospects, with international agreements and accompanying infrastructure development looking to boost property values substantially over the next decade.

The Trans-Pacific Partnership (TPP) will soon come into force, and Vietnam is expected to benefit most from membership of the world’s largest trading bloc. Closer to home, South-East Asian economic ties will be solidified and enhanced by membership of the ASEAN Economic Community (AEC), raising prospects and standards still further.

Vietnam is preparing the way for greater investment and collaborations through infrastructure and developments, such as:

• A brand new Metro system in Ho Chi Minh City, which is expected to have a dramatic impact on property values;
• New international airports, catering for expected increases in tourist numbers;
• New highways and inter-city railways.

While the future looks bright, Vietnam remains a developing country, and the potential for growth reflects the fact that the landscape is far from perfect.  Corruption and bureaucracy – long felt to be Vietnam’s greatest hindrance – are being acknowledged and challenged as a priority as the country seeks to integrate still further with the international community.  Uncertainty over future legislation is tempered by recognition that Vietnam has one of the most stable governing regimes in Asia, benefiting growth prospects.

Benthanh Market, symbol of development in Saigon

Overall however, the picture is very positive.  In addition to the positive economic forecasts, Vietnamese people welcome foreigners to one of the most optimistic nations in the world, a nation with high literacy, improving education and knowledge of English and strong work ethic.

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Stay tuned to this blog for further updates on the market.  If you have any question or need advice requirements about property Vietnam, please contact us.

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

According to the Management Board of HCMC Urban Railway, the project  of construction monorail train Number 2 (District 8 – Binh Thanh) stretches over 27 km with a total capital estimated 15 015 billions VND. Depot (maintenance station) of this monorail train will be built in Phong Phu Commune, Binh Chanh District, with an area of about 8 hectares.

Metro system No.1 Ben Thanh-Suoi Tien will be completed in 2017

 Monorail No.2 starts from Nguyen Van Linh road intersection – Highway 1 – Highway 50 and goes along Nguyen Van Linh – Huynh Tan Phat over the Saigon River – North-South of Thu Thiem Road – Thu Thiem new urban area – Tran Nao – Xuan Thuy – over Saigon River – urban area in Binh Quoi – Thanh Da. Orientation will connect with the 3A metro (Ben Thanh – Tan Kien).

This monorail train is expected to attract many passengers because of being passing a series of populated areas in District 2, District 7, Binh Thanh where is Vinhomes Central Park project in and Binh Chanh District. Currently the project is calling for investment from the BOT (build – operate – transfer) capital and PPP (public – private partners) capital.

As planned transport development project and vision approved by Prime Minister till 2020, HCM City will have 8 metros (subway), 6-line BRT (bus rapid transit) and 3 routes: tramway (tram) and monorail train (one ray train).

Thus, the first tramway line is almost 13 km long (Ba Son – Ton Duc Thang – Me Linh Square – Vo Van Kiet – Ly Chieu Hoang – Western Bus Station). This tramway is Oriented to extend to Thanh Da urban area (Binh Thanh District); The metro number 2 has over 27 km length (district 8 – District 2 – Binh Thanh district) and monorail train number 3 is about 16.5 km (crossroads Phan Van Tri – Nguyen Oanh) – Phan Van Tri – Quang Trung – Quang Trung Software Park – To Ky – Tan Chanh Hiep station).

Monorail has higher speed than metrorail and monorail costs less than metrorail.

Monorail trains have appeared in many major cities around the world and is estimated to have the advantage of being much cheaper than the high railway and underground railway and transport capacity. Construction period is also shorter and less impact on the surrounding traffic. In addition, this type of transport takes less space as small monorail pillar and far space.
This information shows us the determinated action from government to develop infrastucture of Ho Chi Minh City and value of property that foreigners will buy after new law applied form the 1st of July.

Compiled by VietApartment NEWS

Literatured from VnExpress

In the first day open sale, the successful transaction customer will have the opportunity to join the program lucky draw winners to travel to the island paradise Maldives, Honda SH, iPhone 6 Plus, tablets iPad Air, MasterCard and many other gifts.

The project launched on 21th of June. There are more than 500 people (Vietnamese) registered to buy apartments in which the first 300 peoples have selected the apartment and receive special offers. That is a signal of good recovery of real estate market in this premium segment of accommodation.

TNR Holdings Vietnam – the unit managers and project developers have signed a strategical cooperation agreement with Maritime Bank to support the mortgage with 4.99% interest rate incentives in the first year. TNR Holdings Vietnam also offer reasonable prices and flexible payment methods, suitable for home buyers.

The GoldView is located at 346 Ben Van Don, Ward 1, District 4, Ho Chi Minh City, on the land over 23.000m2. It takes about 3 minutes to Ben Thanh Market. The complex is designed with two towers, the first one – tower A consists 33 floors tower A and two basements, and tower B with 27 floors, two basements.

The internal facility of GoldView complex buiding has modern standard with 18.000m2 business center which is managed by the Group management and consultancy CBRE real estate. It also has swimming pools, hanging gardens and fountains, gym, yoga, entertainment and children’s advocacy.

The GoldView apartment is designed with three 685sqm swimming pool with large landscape includes two swimming pools for adults and children in the 5th floor of tower A and in the rooftop swimming pool overflow tower B.

The unique highlight of Goldview is the hanging garden and 750m2 large fountain at the top floor, nicely designed landscape with trees. This would help residnent for walking and watching the surrounding from above .

VietApartment NEWS

The Sun Avenue apartment with 7 buildings in District 2 is a very big project will be completed in 2017

According to the statistic from the Construction Ministry, the credit balance in real estate calculated to 31^st Jan 2015 around 316.578bn VND, mean 4.8% increase compared with the end of 2014. Evaluations from the ministry also show the price level is fairly stable. For some projects, which located in a well-equipped infrastructure zone and their deployment keep the schedule, the price is slightly go up. In Hanoi, the price for apartments is stable in general speaking; for some project under construction but in good location, the price rises from 1-3%. In Ho Chi Minh market, the price is also stable, not many fluctuations but we also observed some increase in good location projects.

The Construction Ministry said, as of mid-March 2015 the 30.000bn VND credit package, which is supposed to give real estate market a push,  has been disbursed  6.285bn VND, equivalent of 20.95% the total. Besides, the capitals committed for lending reached 10.967bn VND, corresponding to 36.5% the whole package. Considering the structure of the loan, the banks have contracted to commit for 14.367 households, personal loans totaling 6.547bn VND, of which 4.525bn VND has been disbursed. Besides, the banks is committed to loan 34 projects 4.220bn VND, disbursed for 31 projects with 1.760bn debt.

Also in first 3 months this year, the real estate market occur the conversion trend from residential to social houses and it also adjusted the structure of commercial houses segment. There are 88 projects applied for structural adjusting in apartments, an increase of 14 projects compared with same period last year, the number of apartment is 36.113 initially, applied to convert 49.199. There are 62 projects registered for converting from residential to social housing with the construction scale of 41.769 apartments.

Although the market is showing some positive signs, but more than ever, the management authority and businesses need to have suitable movements, must avoid creating shocks, disappointing the confidence has newly rekindled. With the warming of the market, there are some bad tactics of creating virtual fever appeared with sophisticated level. Together, the credit policies are being loosed more to the real estate market while the interest rate is attractive. It is clearly that the market is recovering but how long it stands this state or this is just a temporary in short-term, depends on the attitudes from all partners. Remember, haste is of the devil!

Compiled by VietApartment NEWS

Literaturated from Economic Investment