Law on Housing 2014 has brought huge opportunities for foreigners to buy houses in Vietnam, as numerous real estate projects quickly filling up their quotas.
The My Dinh area is becoming a "small Hong Kong"
According to CBRE, South Koreans are the most interested customers for Vietnam’s real estate projects over the last years, and this will remain a trend for a long time because prices are quite affordable, along with high profitability and the participation of high-quality projects and reputable developers.
Price is one of the most important factors behind any investment decision. The premium segment in Vietnam is in the price range of $3,000-4,000 per square metre, while it is $15,000-20,000 in South Korea. This means South Korean customers expect prices in Vietnam to increase, given the fast growth of the economy.
Additionally, the South Korean government has tightened investment into real estate by taxing the profit on re-leasing. Thereby, South Korean investors have turned towards international markets, and Vietnam is emerging as a promising destination.
According to a survey from KB Group, an investment holding company specialising in property and resort development, Vietnam is a favourite destination picked by 57.1 per cent of responses. South Korea also ranks second among the countries and territories investing in Vietnam, so both demand for renting and purchasing are increasing.
Recently, Vietnam is in the top ten countries for expats to live and work, according to HSBC Expat report. 40 per cent of expats intend to stay in Vietnam for at least five years, and this figure rose to 60 per cent after enjoying life in Vietnam for a time. This grows the demand for purchasing real estate for both residential and investment purposes.
Some surveys show that the South Korean diaspora is the largestamong expats communities in Vietnam, followed by the Japanese, Singaporean, Hong Kong (China), and Taiwanese communities.
The most outstanding projects
While demand is increasing, supply in the premium segment in the My Dinh area cannot match demand. Recently, a project on Le Duc Tho Street has announced maxing out its quota for foreigners, hot on the heels of two other premium projects, which also filled their 30 per cent for foreigners.
Most recently, only one premium project has been released, The Matrix One developed by MIKGroup. Located on a golden land plot in the administrative-commercial centre in the west of Hanoi, as well as surrounded by key roads like Me Tri, Chau Van Liem, Le Quang Dao, and Thang Long Boulevard, The Matrix One has received a great deal of attention.
Additionally, The Matrix One is surrounded by schools, hospitals, and is in the vicinity of My Dinh National Stadium. Especially, residents of The Matrix One will have a direct view on the F1 racetrack, which is an exclusive experience besides the outstanding living standards.
Over the world, it is a successful model to build premium real estate next to a national sports complex or F1 racetrack, as can be seen in Suzuka on Japan's Honshu Island, Uttar Pradesh in India, Singapore, and Malaysia, where they could lease the view from their apartment for thousands of dollars an hour.
Besides F1, the My Dinh area is becoming the centre of culture and sport of the country, where Sea Games 31 will be held in 2021. The Matrix One is an exclusive project in this area at the affordable price of VND52 million ($2.26 million) per sq.m, equivalent to one-third of the prices in emerging areas in Ho Chi Minh City, which charge around VND150-200 million ($6,500-8,700) per sq.m. The Matrix One is the best choice for both domestic and foreign smart investors for the medium and long term. VIR
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