Foreigners increase housing investment in Vietnam

The policy of home ownership has gradually opened, making foreign tourists choose to invest in real estate for long-term stay and business.

Ms. Park Su Jung, a Korean, has been living in Vietnam for 2 years. Realizing the great demand for housing of her compatriots, she chose to work as a real estate broker.

"We Koreans like to live together, so once we choose a good place to live, we would like to recommend it to others. Some other foreign investors also own many apartments in one project then rent it to colleagues, fellow countrymen", Ms. Park shared.

According to real estate experts, foreigners when participating in the Vietnamese housing market, they have the advantage of understanding the tastes and languages ​​of fellow customers. People like Ms. Park are contributing to the growing trend of homeownership by foreign customers in projects in Vietnam.

Foreign guests prioritize projects with green campus, diverse utilities.

Statistics of TNR Holdings for 2 years from 2017-2019 in the project of the unit shows that the number of foreign customers is increasing year by year. For example, in 2017, Goldmark City had 8% foreign visitors. A year later, this figure increased to 15% and reached 18% in 2019. Or for The Goldview project, the percentage of foreign homeownership increased from 3% to 8% in less than 2 years.

The unit explained that the projects to attract foreign visitors are located in areas with many foreign organizations and businesses, mainly Korea and Japan. Besides, the investor focuses on building a modern utility system according to international standards, forming a civilized foreign resident community.

At the real estate trading floors, the western area of ​​Hanoi with synchronous utilities is the place where most of the foreigners live in the capital. "It is very cool, clean and especially has very nice art squares, the apartment design is very similar to when we are in Singapore. My friends are here a lot because we feel like we are at home", said Berth, from Singapore, who lives in TNR Goldmark City.

Evaluating this, Mr. Mathew Powell, Director of Savill Hanoi and Da Nang, said that foreigners who buy houses are very interested in the legality. They often observe whether the actual projects that the investor has done, the landscape, utilities are good or not.

Potential housing market for foreign visitors

According to a survey of TNR Holdings, the average house price in Hanoi is currently at 2,000 USD per m2, in HCMC 2,400 USD per m2. This is much lower than other countries in the region, making foreigners want to own houses in Vietnam to stay and invest.

West of Hanoi is one of the areas where the majority of foreigners live.

The HSBC Expat Explorer report says 15% of foreigners in Vietnam earn more than US $ 250,000 a year, compared with the global average of just 7%. In addition, 75% of foreigners in Vietnam say they are satisfied with the relatively higher disposable income. 49% of foreigners comment that prices in restaurants, theaters, music bars in Vietnam are very cheap. All of this makes Vietnam one of the cheapest living costs countries in the world.

In addition, the report also addresses many other reasons such as Vietnam's diverse culture, open people, cheap living costs, beautiful landscapes, pleasant weather,...

Currently, the open door policy for foreigners to buy houses in Vietnam has been adopted by allowing 30% of the products in a project to be sold to foreigners. Each ward-level administrative unit may have less than 10% of the projects (villas or detached houses) or 250 units owned by foreigners.

Although there are no specific statistics on the number of foreigners owning houses in Vietnam, but according to TNR Holdings, the positive signal from the market shows that this customer segment is rich in potential.

"Along with more open policies, I believe the housing market for foreigners will have many changes in the near future. This will be a change in line with the trend when industrial real estate is also waiting for a new wave from the trend of moving factories out of China", TNR Holdings said.

According to Thanh Duong