CBRE Vietnam has seen that the condominium market in Ho Chi Minh City has attracted greater attention from foreign buyers in the high-end and luxury segment. In the first nine months of 2018, the number of transactions from foreign buyers accounted for 76 per cent of CBRE’s total, of which 31 per cent were from Chinese buyers compared to just 4 per cent in 2017.

Based the number of transactions it handled in the high-end and luxury segment in the past three years, there is clearly greater attention being paid by foreign buyers to the residential for sale market in general, particularly from Chinese buyers.

CBRE added that there is also more attention from buyers who have never come to Vietnam.

In the past, most foreign buyers bought houses mainly because they lived and worked in Vietnam, but now, thanks to active marketing in foreign markets by developers, individual overseas investors know more about Vietnam and many have decided to buy despite never setting foot in the country.

“We distinguished foreign buyers into two different groups: one living and working in Vietnam and the other living and working abroad but still having an interest in Vietnam’s condominium market,” it noted in its statement.

The high-end and luxury condominium market in Ho Chi Minh City is very attractive to investors from Asia, according to CBRE Vietnam.

The proportion of Chinese buyers accounted for only 2 per cent in 2016, 4 per cent in 2017, and then 31 per cent of successful transactions handled by CBRE in the high-end and luxury segment. 

The main reason is the relaxation of foreign ownership in Vietnam since 2015. In addition, developers in Vietnam are also actively marketing their projects in foreign countries. 

In 2016-2017, developers only marketed their projects in Singapore and Hong Kong. In 2018, meanwhile, they took their projects to Beijing and Shanghai.

One of the main reasons Chinese investors are interested in investing in Ho Chi Minh City’s real estate market is that they see similarities in development trends between the city and Shanghai. 

Thirty years ago, Shanghai was quite like Ho Chi Minh City is now, with a large available land bank and low-rise buildings. Shanghai is now one of the leading financial centers in the world, with real estate prices increasing many times over.

Regarding the price of the luxury segment Chinese customers are interested in, CBRE said it was quiet in 2017 but there have been a few new projects with selling prices from $5,000 to $6,000 per sq m or even up to $9,000. 

Due to limited supply, it is forecast that the price of condominiums in the segment will fluctuate in the near future.

VN Economic Times