8 reasons why Vietnam is becoming a hot spot in the world market of real estate
I have been asked a lot why does Whitemark take root in Vietnam? Reasons are plentiful. In this post, I will touch on the economic side of the question and tell you why Vietnam is the best place to start a real estate business.
Just recently a communist country on almost complete lockdown, today it is in top 10 of the most attractive places to invest, according to US News & World Report.
1. Local economy shows the highest growth rate in the Asia-Pacific region.
Over the last 3 years, Vietnam has overtaken China and moved into first place. In 2017-2019 Vietnam grew by 7% CAGR compared to 3% of China.
2. Foreigners are welcomed
Since 2015 new legislation has opened the local real estate market for foreigners. Any non-resident holding a valid visa, be it an expatriate or even a tourist, can buy a property with a 50-year lease scheme attached to it and the right to renew the lease at the term´s expiry.
3. Poised for price rises
Property prices are more than affordable in comparison with other hot spots like Bangkok or Singapore. Luxury property in the Ho Chi Minh City centre cost somewhere between 3’000 and 7’000 USD per square metre. An equivalent accommodation in Bangkok would cost 8’000 to 10’000 USD per sq.m., and 12’000 to 15’000 in Singapore.
4. High income from renting and leasing out
Rent-to-price ratio from leasing out luxury condos in elite HCMC neighbourhoods is in the ballpark of 6-8%, which is 1,5 to 2,5 higher than in Bangkok or Singapore.
5. Infrastructure development
Cities like Ho Chi Minh grow quickly and merge with nearby towns. Residential areas, schools and hospitals get modernised and upscaled. In 2021, HCMC will meet its first subway system aimed to link the city centre with eastern districts.
6. New trade agreement
All-encompassing Trans-Pacific Partnership that came into force in 2019 is a comprehensive and progressive agreement affecting trade between Vietnam, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Canada. It gives unprecedented protection to foreign investors venturing into the Vietnamese real estate market.
7. International education
Oftentimes when it comes to choosing a RE property, access to international schools and universities makes its way into REIC checklists. HCMC is one of only 20 cities in the world with more than 50 international schools.
8. Locations aplenty
Vietnam offers a wide choice of investing opportunities. It may be a modern condo in the centre of a busy megapolis or a luxurious seaside estate. Ho Chi Minh, Hanoi, Nha Trang and Da Nang are the four most popular investment destinations in Vietnam.
We sell the best high-end real estate properties in Ho Chi Minh. Yesterday, Whitemark received a proposal for selling SOLEIL residential complex located on the sea coast in Da Nang. Today, our team is already planning sales campaigns, and our brokers will start receiving calls from prospective clients very shortly.
We still have some openings for a broker in our team. Feel free to contact us if you know how to sell premium and luxury real estate.