Vietnam has recently opened up their market to foreign buyers, and the effects are obvious as buying sentiment has largely increased over the last year. Foreigners were previously only able to purchase one property, and had to first have a work permit in order to do so. Now, they are allowed to buy, hold, occupy or lease out more than one property. Property developers are now allowed to also sell their properties outside of Vietnam, which increases the pool of potential buyers tremendously. Property analysts have since seen a rise in the number of foreign buyers, in particular from Korea, Japan, Singapore and Malaysia, most of whom work in Vietnam.
Photo credit: Keppel Land.
As with most major cities, the property market in Ho Chi Minh has benefitted from these legislative changes; properties in districts near International schools or Multi-National Companies (MNCs) are particularly popular. Developers have also been launching more units in Ho Chi Minh, with 10,114 new units in 26 projects launched in the last quarter alone.
For example, Keppel Land will be launching the second phase of its project in Ho Chi Minh City – Estella Heights, soon. Prices will be starting at $288 psf, which makes an $150,000 unit more than affordable for buyers or investors. As Vietnam continues to integrate globally, the potential for growth is immense, and investors taking the opportunity to enter the market early may be able to see yields soon.