5 Reasons Why Vietnam Is Becoming Asia’s Latest Property Hotspot
2020 is a challenging year for global investors. While no country can avoid the pandemic’s economic downturn, the prospects of Vietnam real estate remain positive and are the brightest among Asian countries. This article highlights 5 crucial factors driving foreign buyers’ interest in this rising Southeast Asian country.
1. Growing economy
2020 is a challenging year for global investors. But Vietnam has received international praise for its efficient and effective response to the COVID-19 outbreak. While no country can avoid the pandemic’s economic downturn, the prospects of Vietnam real estate remain optimistic and are the brightest among Asian countries. Data released by the General Statistics Office of Vietnam estimated a 1.81 percent growth to Vietnam’s GDP in the first half of 2020. The estimation is encouraging as Vietnam is one of the few countries that achieved positive growth during the pandemic.
2. Foreigners friendly policy
It used to be very difficult for foreigners to own property in Vietnam. But now, thanks to the Vietnamese government’s support, buying a property in Vietnam has become easier for foreigners. Since 2015, foreigners can purchase as many real estate units as they want, provided that they do not buy more than 30 percent of the units in each new residential project. Foreigners are also allowed to use and control the land they lease with a leasehold period of up to 50-70 years. If you want to find out more details, speak to a Vietnam real estate expert to find more.
3. Improved infrastructure
The urban development in Vietnam has been a miracle, and the Vietnamese government is very supportive. Various expressway projects are being planned or under construction to improve connectivity within major cities. For example, the North-South expressway is a Vietnamese expressway running from Hanoi to Cần Thơ. It has been described as Vietnam’s future transport foundation. The expressway will be 1,941 km long, with a total cost estimate of US$18.5 billion. Meanwhile, with rapid urbanization, Hanoi and Ho Chi Minh are building rapid transit systems in the hope of reducing private vehicle ownership and improving air quality. The ambitious infrastructure plan will undoubtedly bring many benefits to the Vietnam real estate market.
4. Affordable prices
The good thing about Vietnam is that it is a fast-growing country. In Vietnam, home prices are considered very affordable compared to traditional property hotspots such as Hong Kong and Singapore. The average price of apartments in Hanoi is estimated to be US$1,493 per sq. m. in Q2 2020. Despite rising prices, Vietnam’s luxury apartments seem like an attractive deal for wealthy investors who used to sky-high prices back home or in countries like Shanghai, Singapore and Hong Kong.
5. Offer great yields
Rental yield is the return on investment in percent (%) when comparing the property’s current value to the rental income. In Vietnam, yields can reach up to 6%-8%, especially in popular areas. According to multiple sources, Hanoi offers the greatest yields compared to other cities. Thanks to its strategic location, the capital is becoming extremely popular among the Asian real estate community. Flying to Hanoi takes you less than 2 hours from Hong Kong and about 5 hours from Shanghai. Real estate experts also expect property rental yields to further rise in the future as demand increases.
Want to buy property in Vietnam? Reach out to a trusted real estate community for more information!