The real estate market in Vietnam is growing by leaps and bounds, fuelled mostly by the burgeoning middle class and boosted by the fast-paced infrastructural and economic growth. Going against the grain, its economy is the bright spark amidst a gloomy regional economic outlook, posting a 6.7 per cent growth last year.
Photo: The Estella condominium in Ho Chi Minh City. (Photo credit: KeppeLand)
Some Singapore developers have already found their footing in this rapidly blossoming South-east Asian country, including Keppel Land and CapitaLand. The former has launched the Estella Heights and The Estella condominium in Ho Chi Minh City to positive response and the latter’s Vista Verde and The Vista condominiums are reeling in the bucks.
Photo: Vista Verde and The Vista condominium (Photo credit: CapitaLand)
In Ho Chi Minh City alone, 36,160 condominium units were sold last year, at an astounding 98 per cent increase from 2014. In the country’s capitol, Hanoi, 21,100 units were sold at a 90 per cent leap from the year before. Some of the change could be attributed to the finance sector opening up, to allow more young couples to take out home loans, and simply from the fact that more housing units are now made available. Despite the boom, property prices are still affordable, a 15 to 20 per cent lower than the 2008 peak. As a rough estimate, a 70 sq metre apartment in the city fringes of Ho Chi Minh CBD will cost $2,200 per sq metre – that comes up to approximately $154,000 for a new 2-bedroom apartment.
There is no doubt long-term potential for real estate market growth in Vietnam, and despite some calculate risks, the time to invest could be now.