There is no better time than now to invest in Vietnam’s property market.
Attention is once again turning to Vietnam’s property market. As prices continue on an upwards hike in Hong Kong, many residents are looking elsewhere to invest their money. Property in Vietnam is considerably cheaper than that of mature markets like that of Hong Kong and Singapore. For the top end of the market prices are approximately half of that found in Hong Kong.
Since the market opened up to foreigners in 2015 it is now really gaining traction. Foreigners are permitted to own up to 30 percent of units in every building. According to the Ho Chi Minh City Real Estate Association, 700 foreigners have purchased property from when the gates opened until the end of 2016. But these figures are set to hike with many exhibitions showcasing Vietnam property being taken overseas to places such as to Hong Kong.
Reasons to invest
The economy is going from strength-to-strength. Throw in the infrastructure improvements currently occurring and these are all the right ingredients to lure in investors. Next year Hanoi’s first six metro lines will open. In Ho Chi Minh City their version will open in 2020.
The profile of investors is also shifting too. It is not just those ‘smart’ investors who have eyed up the potential in Vietnam but rather ordinary investors are dipping their toes in now too. The landscape of investment is also changing. Being liken to China 10 years ago, Vietnam is welcoming manufacturing on a large scale. Samsung has spread its wings even further into the country bringing with it more expatriates needing to be housed.
To top it off, Vietnam has healthy rental yields. Reported to be at between seven and eight percent, this is higher than those achieved in Hong Kong, Bangkok or even Singapore. With all this attention it is no wonder that prices are heading upwards. Figures released from Jones Lang LaSalle reveal that in Ho Chi Minh City prices rose by 6.9 percent for the first quarter of this year. Hanoi outdid this with a 7.3 percent increase.
This leads to estimates that the residential market will enjoy a good growth of between eight and ten percent this year. So if you are looking to make the most of Vietnam’s prosperous property market, our advice is get in quick to make the most of it.
To take advantage of Vietnam’s lucrative property market visit Dot Property’s extensive listings found online here.
