The Vietnam property market is growing in popularity: in particular, a lot of investors from mainland China and Hong Kong are either planning to invest or have invested in the Vietnam real estate market.
A Hong Kong-based finance industry worker said: “Home prices in Vietnam are still very cheap compared with Hong Kong or mainland China.
“With the local government keen on attracting buyers, through various stimulus measures, this looks like a big chance to win.”
The prices of property in other Asian countries are a lot higher in comparison to Vietnam, which makes it an attractive place to invest. Many investors hope to see their new assets appreciate fast in value, offering big profits.
For example, according to the spokesperson from a large finance company, prices at home are elevating. As a result, a lot of buyers in the property market are looking overseas at alternative options, to save money and to gain more from investment opportunities.
Vietnam is a country that is encouraged to pursue growth in all areas, but specifically in the real estate market. They have a supportive government with policies that offer low entry costs, which has meant that they have witnessed considerable growth over the last few years (particularly in Ho Chi Minh and Hanoi – the country’s two biggest cities), all contributing to the great property news for Vietnam.
A series of evolving infrastructure improvements are also ongoing, which adds to the future continuing success of the Vietnam property market. Ho Chi Minh’s metro is scheduled to be finished by 2020 and Hanoi’s first of six metro lines is set to be completed by 2018. These attributes will increase the experience for any tourists visiting Vietnam and in turn, more visitors are likely to gain the desire to stay in Vietnam over an extended period of time. Should this be the case, visitors are likely to invest in the renting property market in Vietnam and may even decide to stay and work in the country – this is good news for property investors.
The Vietnam property market has heated up considerably – more and more people are buying property in Vietnam. For example, according to the Ho Chi Minh Real Estate Association, 700 foreigners bought property in the city in 2015 (from July 1 to the end of the first quarter of last year).
Contributing to Vietnam’s property success, a lot of potential investors are attending events across South East Asia, all related to the Vietnam property market.
CEO and founder Asia Bankers Club, Kingston Lai has emphasised that many ordinary investors are setting their goals on the Vietnam property market. He said: “It’s like where China was 10 years ago.” He described the country as the world’s “next factory” – a title embraced by China for a very long time.
While all of this is good property news for the Vietnam property market, it is imperative for investors to be mindful of the risks and should conduct complete due diligence before entering a developing real estate market. At the same time, investors need to take a chance, take that leap of faith that could progress to an outstanding outcome, because without taking risks, the unknown will forever remain in its place.
Written by Gemma Smith