Vietnam’s real estate market, despite its long-lasting struggle, isfinally gaining momentum with stable prices on the rise, Savills VietnamManaging Director Neil MacGregor declared on May 21.
He claimed that in the next five years there will be no repeat of the property bubbles that occurred in 2008 and 2010.
Vietnam’s real estate market is expected to boom when the amendedHousing Law, which allows foreign property ownership for the first time,takes effect on July 1.
Under the Law,foreigners will be entitled to own up to 30 percent of the apartments ina building, or 250 villas/townhouses in a project. Housing ownershipcertificates will be valid for 50 years.
Foreigninvestors, especially from Singapore – the leading FDI investor in HoChi Minh City – are raring to grab a share of the pie, he revealed.
The growing global economy, expanding middle class and the diversityof supply and demand will also contribute to the domestic success duringthe next five-year period, Savills believes.
They noted that Ho Chi Minh City, with its urban railway project;central Da Nang city, an emerging tourism hub; and northern Hai Phongprovince, will consolidate their positions as key real estate markets.
A recent report from Savills Vietnam showed thatVietnam has enjoyed rapid economic growth over the last 20 years. TheSoutheast Asian nation has recorded a total registered overseas capitalof 70 billion USD and ranked among the world’s top ten countries for thevolume of remittances.
In 2014 alone, theoverall remittances sent to Vietnam were worth 12.5 billion USD, up to20 percent of which belonged to the property sector.
Local government monetary policies, including an interest ratereduction to 6.5 percent per year, have stimulated the economy,particularly among retailers, with new engagement from internationalgiants like McDonalds and Starbucks.
Meanwhile,the office leasing market has been on the rise with increasing domesticdemand from finance, insurance and real estate companies.
The residential market has seen higher demand for condominiums as theyounger generation is following an independent lifestyle of livingapart from their parents.-VNA
He claimed that in the next five years there will be no repeat of the property bubbles that occurred in 2008 and 2010.
Vietnam’s real estate market is expected to boom when the amendedHousing Law, which allows foreign property ownership for the first time,takes effect on July 1.
Under the Law,foreigners will be entitled to own up to 30 percent of the apartments ina building, or 250 villas/townhouses in a project. Housing ownershipcertificates will be valid for 50 years.
Foreigninvestors, especially from Singapore – the leading FDI investor in HoChi Minh City – are raring to grab a share of the pie, he revealed.
The growing global economy, expanding middle class and the diversityof supply and demand will also contribute to the domestic success duringthe next five-year period, Savills believes.
They noted that Ho Chi Minh City, with its urban railway project;central Da Nang city, an emerging tourism hub; and northern Hai Phongprovince, will consolidate their positions as key real estate markets.
A recent report from Savills Vietnam showed thatVietnam has enjoyed rapid economic growth over the last 20 years. TheSoutheast Asian nation has recorded a total registered overseas capitalof 70 billion USD and ranked among the world’s top ten countries for thevolume of remittances.
In 2014 alone, theoverall remittances sent to Vietnam were worth 12.5 billion USD, up to20 percent of which belonged to the property sector.
Local government monetary policies, including an interest ratereduction to 6.5 percent per year, have stimulated the economy,particularly among retailers, with new engagement from internationalgiants like McDonalds and Starbucks.
Meanwhile,the office leasing market has been on the rise with increasing domesticdemand from finance, insurance and real estate companies.
The residential market has seen higher demand for condominiums as theyounger generation is following an independent lifestyle of livingapart from their parents.-VNA
