According to Vietnam’s General Statistics Office, in 2019, the economy grew significantly by 6,98%, which is highest record for the past nine years. Mr. Vikram Kohli, who is General Directior of CBRE in Indochina Area affirms that Vietnam is among the top fastest-growing economies globally.
In the optimistic overall picture of the economy, the real estate market in Vietnam during the first half of 2019 has received many big M&A deals such as: CapitaLand completed the acquisition of Ascendas and Singbridge Pte. Ltd; Hoa Binh Group sold shares to Hyundai Elevator or VinaCapital Ventures announce to invest $ 4 million in Rever- a real estate brokerage technology company … These are just a few of the many factors contributing to the sharp start of the market, affirming the new focal position and pointing to the trend of long-term investment options in Vietnam by international investors.
Let’s highlight 5 main factors drawing international investors in this rising Southeast Asian country:
|The attention from foreign buyers has paved the way for the 15 percent development of housing prices in the central areas of Ho Chi Minh city in recent years (due to CBRE’s record)|
- Free Consultant fee
In many countries and region over the world such as in Taiwan, Korea…. ,the customers have to pay the fee of consulting to get the advisor offers for sightseeing services, experience, real estate consultancy; especially for high end class projects. In Vietnam, the customers are completely free consulted by a professional consultant choosed.
- Smart investment
Vietnam has only levied a non-agricultural land use tax of 0.03% to a maximum of 0.15%, not currently levy tax of housing and other assets attached to the land, while the customers in Singapore will be taxed at 3% if buying any properties. If they buy a second property or more, they will have to pay an addition of 7%, and continue to add another 10% to the third property.
Another comparison, to own a property in the high-end segment in Taiwan, customers must pay the price that can be higher 8 to 10 times than an equivalent product in Ho Chi Minh City, and also take payment to buy the public areas such as the pool area, community room, gym … accounting for an average of 30% of the total area of the project.
- The potential for solid value added
Witnessing the slow growth momentum of developed markets in the Asia-Pacific region, which is evidenced for the decline in the number of transactions and revenue recognition, international investors are trending to have investment options in emerging markets like Vietnam.
With a low exchange rate, the value of the high-end segment in big cities in Vietnam such as Hanoi is still much lower than the similar segment product in other cities in Asia such as Hongkong, Singapore, Taiwan…Likewise,the cost of products in the same segment in Vietnam is much lower than other developed countries.
- Because of recent laws that have been passed, every foreign investor that has been granted a Vietnam visa can take advantage of the property launch in Ho Chi Minh City and invest on real estate industry in the country. Whether it be a condominium, an apartment or a villa, any qualified foreigner can own a residential property here in Saigon.Recent legislation has now made it easier to buy property in Vietnam
As long as the purchases don’t go over thirty percent of the total available units of a particular complex, there’s no limit in the number of properties that a foreign investor can purchase.
- Intergrated and qualified internationally on construction – management
In order to be competitive on global market, the projects in Vietnam are concentrating on complying with international standards strictly, meeting the requirements of domestic and foreign investors.
|Roman Plaza – one of the top middle-end class segment using materials that meet international standards|
Take Centenial, which has been developed by international real estate Alpha King in the central of 1 Dicstrict , Ho Chi Minh city as a typical example. This is one of the high-end class project in Vietnam applying BIM technology to ensure the construction quality, sustainability through meeting the most stringent standards such as LEED (USA), or IFC & NFPA (USA) fire safety standards.
On the other hand, Alpha Hill – another A+ class, the investor focused on choosing high-grade construction materials, such as the use of Laminated Double Glazed Triple Low-E glass with the world’s most expensive 8-layer structure (the only glass available today. Can prevent up to 95% of harmful UV rays, not only soundproof, maximum heat resistance, but also ensure sunlight exposure to 75% of the entire floor area, making each apartment always airy and overflowing with natural light).
Focusing on quality, complying with strict international standards, accordingly, the quality of high-end projects also shows the maturity of Vietnam’s real estate market, on the journey to conquer guests. domestic and foreign goods.