Overview Of Vietnam Real Estate

Overview of Vietnam real estate 

Due to the following fundamentals, Vietnam represents a golden opportunity for investors with a population of around 100 million, continuous GDP growth over the past 20 years, a shining example of limiting the Covid 19 pandemic, and rising flows in Foreign Direct Investment and exports:

Vietnam's population, which is currently 55% younger than 35, is predicted to grow to 120 million people by 2050, with the middle class expected to reach 30% of the total by 2028.

GDP per capita increased by 2.7 times between 2002 and 2018, reaching more than US$2,700 in 2019. From over 70% in 1986 to around 6% in 2019, poverty rates fell substantially.

On the strength of successful COVID-19 infection control, excellent results from export-oriented industry, and a strong recovery in domestic demand, Vietnam's GDP is predicted to increase by 6.6 percent in 2021.

The implementation of international free trade agreements will stimulate investment in the high technology manufacturing, agricultural, real estate, and information technology sectors and raise export revenue.

It is almost probable that Vietnam is seeing a quickly developing infrastructure as a result of the country's expanding economy. In recent years, the Vietnamese government has set aside a sizable sum of money to invest in the nation's infrastructure, including new ports, international airports, hospitals, and highways.

Following the passage of a new rule in 2015 allowing foreigners to legally buy property in residential complexes like condominiums for sale or beachfront villas, the Vietnam real estate market has experienced strong demand.

Vietnam is one of the nations with the greatest economic growth and one of the safest places in the world. With more than 2000km of stunning beaches, a high standard of living, and countless options, Vietnam is unquestionably the ideal place to invest in real estate.

What kinds of property in Vietnam real estate expats can afford? 

Apartments

Tower blocks used for apartments often have 20 to 50 stories. The majority of this kind of property may be found in major Vietnamese cities like Ho Chi Minh City or Hanoi. Property developers from outside or locally can construct apartment flats. Because of this, there are always apartments available in a variety of pricing levels.

The amenities that come with an apartment also contribute to its value. Sports fields, kid's playgrounds, swimming pools, underground parking garages, and other features are some of the most popular amenities. A few upscale apartment buildings are also home to banks, schools, hospitals, and commercial centers.

Villas

Villa simply means villa in English. A villa is a type of lodging constructed on a sizable plot of land and removed from its surroundings. Each house is huge in scale, giving a contemporary, opulent style, with open space and close proximity to the outdoors.

There are numerous bedrooms, a living room, a garden, and a private pool in a whole villa. Additionally, because a villa is entirely independent from its surroundings, it frequently has private walkways and gardens encircling it.

Villas are becoming more and more popular due to their numerous benefits, including their ample space, opulent decor, and ideal privacy. A villa is the perfect setting for a family's extended vacation or enjoyable weekend.

Officetels

Office (office) and Hotel make the compound term "officetel" (houses). Each officetel apartment is a compact 25 to 50 square meters, making it suited for a wide range of clients, particularly entrepreneurs and small business owners. This kind can offer a comfortable space for business activities as well as satisfy the daily needs of homeowners.

Condotels

Condotels are created when a condominium and a hotel are combined. These condos, which double as hotels, are typically located in tourist destinations or big cities. Particularly in tourist destinations like Da Nang or Nha Trang, the number of condotels is constantly increasing.

However, you should give condotels some thought before renting or purchasing one. since a condotel's certificate of ownership is only good for 50 to 70 years. The condotel certificate is not the same as permanent residency.

Landed property

Single-family homes are referred to as landed property. Every house is unique in its design and construction, and is typically constructed by locals. These homes are the most prevalent in Vietnam, and their thin and lengthy facades make them easy to spot.

These landed homes are grouped together at the streetfront or in the alleyways. These kinds of homes may make ideal investments for overseas homebuyers. Because their worth is based on the land as much as the house.

How to buy property in Vietnam real estate as expats?

Now that you know a little bit about the many kinds of houses in Vietnam, let's look at how you may learn more about them:

By word of mouth: If you already have friends, family, or coworkers in Vietnam, you can always ask them for assistance. Word-of-mouth advertising for real estate is actually pretty beneficial.

Websites for real estate: Websites that display all the homes for sale and for rent can be easily found in Vietnam. I would like to suggest a few websites for you to check out whether you're seeking for rental or sale apartments, offices, houses, or projects: 

Social media: Facebook groups, Linkedin,...

When looking for a house to buy in Vietnam, these sites can also be a useful source of information, particularly Facebook and Linkedin. Join communities for expats in Vietnam if you don't have time to go through many groups and submit your needs for a home to buy. For instance, the location, cost, and amenities...

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If you happen to pass through the neighborhood where your future home will be located, you may notice signs or banners that read "house for sale”, "apartment for rent”, or something similar. Then, all you have to do is phone the owner's number and request more information.

What expats can have when owning property in Vietnam real estate?

If you wish to buy an estate from a Vietnamese real estate developer, you must obtain a certificate of proprietorship.

Since 2017, the government has made it more difficult for foreigners to obtain their property ownership certificates in order to defend national defense and security.

Expats are only permitted to own up to 30% of the flats in a project, and they are not permitted to own real estate in the special regions designated for national defense and security, according to a decree on Vietnam's housing regulations.

The Ministry of Public Security and the Ministry of National Defense alone have the power to create those lists. You could visit the department of building in your area to learn about the list of home developments that are open to international buyers.

Before making any purchases, be sure you are able to fully own the property you wish to acquire and obtain the ownership certificate as a foreigner.

The Pink Book

The pink book - also known as the certificate of land use rights, ownership of homes and other assets related to land—is well-known in Vietnam. A pink book, then, signifies your complete sovereignty.

Vietnamese people prefer to refer to it by such a name for convenience because of the pink hue of its cover, which gave rise to its moniker.

The pink book, published by the Ministry of Natural Resources and Environment, is applicable to all types of land nationwide.

What does the pink book include?

The pink book can be used for the following things:

- Serve as security for bank loans

- Permit you to live in your home and use it for other purposes.

- Make it possible for you to demolish, maintain, renovate, or create a new home (but you must obey the conditions and procedures of laws on construction).

- Permit you to rent, sell, mortgage, or leave the home to an heir.

Best cities in Vietnam real estate to buy property  

When investing abroad, picking the ideal place is not always simple. I've selected some of the most intriguing and well-known cities below, where I suggest you hunt for real estate.

Ho Chi Minh

Ho Chi Minh is the financial center of Vietnam despite not being a coastal city with access to the beach.

One of the Asian cities with the quickest growth, Ho Chi Minh City is luring more and more foreign investors. One explanation is that businesses relocate production to Vietnam as manufacturing in China becomes more expensive. In addition, China's production costs are rising, and people in Hong Kong or Mainland China are increasingly looking for outside investments. I'm confident you'll be able to discover homes for about 25% less than they would cost in places like Singapore, Shanghai, Hong Kong, and Macau.

Ho Chi Minh City is adjacent to other cities like Kuala Lumpur, Phnom Penh, Hong Kong, and Singapore and has a lively atmosphere and many chances.

Da Nang

With little under 1.5 million inhabitants, Danang is the fourth-largest city in Vietnam and the main commercial center of Central Vietnam.

The formation of Hi-Tech Parks and industrial zones has aided in the creation of economic prospects due to its advantageous location where the roads, railway, water, and airways connecting North and South converge.

The young, hardworking, and educated workforce in Da Nang, along with the local government's openness and proactivity, have enabled the city's economy to grow quickly.

In order to support growth and expand the IT and high tech industries, Danang city has constructed a cutting-edge infrastructure, healthcare, and educational system, with the goal of transforming Danang into the "Silicon Valley" of Asia. Additionally, as part of the Da Nang development plan, the largest financial trade center in Central Vietnam will be constructed.

Property prices in Danang have increased significantly during the past five years, indicating strong expansion in the real estate market. Rare prospects for investing in real estate were provided by the current slowdown in the housing market.

Hoi An Ancient Town, My Son Sanctuary, Hue Imperial City, and Phong Nha - Ke Bang National Park are within a short drive from Da Nang, making up four of Vietnam's seven UNESCO World Heritage Sites.

Danang is a popular tourist destination thanks to its stunning, unspoiled beaches, the Ba Na Hills entertainment complex, the Son Tra Mountain, and its award-winning resorts. 8.2 million tourists visited the city in 2019, an increase of 7% from the previous year.

Danang consistently ranks as the most livable city in Vietnam and Southeast Asia, and for good reason.

Visit if you'd like to look at intriguing homes for sale in Da Nang:  (internal link bài viết về Danang)

Nha Trang

Nha Trang, which is situated halfway between Ho Chi Minh City and Danang, is arguably the most popular tourist destination in Vietnam.

Chinese and Russian nationals in particular have made Nha Trang their preferred vacation destination.

Hanoi

Vietnam's capital, Hanoi, is smaller than Ho Chi Minh City, the country's largest commercial center. (The capital of Vietnam is Ha Noi, which is smaller than Ho Chi Minh City.)

In terms of comparisons to China, I'd say that Ho Chi Minh City is more like Shanghai or Shenzhen, and Hanoi is more like Beijing.

In comparison to Ho Chi Minh City, Hanoi has not attracted as many investors despite being the country's political and cultural hub. Compared to other cities, Hanoi receives less media attention.

Even though Hanoi does not receive as much attention or investment as Ho Chi Minh City, many foreign investors, particularly numerous Koreans, continue to pour money into the capital's real estate market.

Recommendations for foreigners purchasing a home in Vietnam real estate 

- Your first step should be to request a map, images, and videos of the property from the owner or the real estate agency.

- Always visit a property in person before making a purchase.

- Request a video call from the home's owner if you are unable to visit the property in person so they can show you around.

- You should think about relocating close to your place of employment to prevent traffic congestion and other transportation-related issues.

- Alleyway homes may not be the most suitable for all people. Because some properties have some issues, like flooded alleys, a lack of views or natural light...

The variety of housing types in the Vietnam industry real estate market gives foreigners additional choices when purchasing Vietnam real estate. This essay should assist you in making the greatest real estate decision for your needs and wants. We are always available at Modoho if you need to rent a place in Vietnam.