Overseas Vietnamese rush to pour money into real estate (part 2)

VietNamNet Bridge - Real estate firms all have confirmed a significant increase in the number of buyers from overseas recently, both overseas Vietnamese and foreigners.

VietNamNet Bridge - Real estate firms all have confirmed a significant increase in the number of buyers from overseas recently, both overseas Vietnamese and foreigners.

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Phu My Hung Company reported more than 100 successful transactions between the company and overseas customers from early July to August 8.

According to Phu My Hung’s general director Truong Quoc Hung, the Phu My Hung new Urban Area has attracted 30,000 residents since the day of establishment; 50 percent of them are foreigners, including Viet Kieu.

Hung believes that with the new law allowing foreigners to buy houses in Vietnam, the number of foreigners and Viet Kieu buying houses under their real names will increase in the time to come.

A real estate expert in HCM City noted that Viet Kieu are eyeing a wide range of real estate products, from high-end apartments and luxury beachfront villas to lower-end apartments.

He said many people from Hong Kong and South Korea have registered to buy apartments at City Gate, a project on Vo Van Kiet Street, because the apartment price is very ‘reasonable’ at just VND1-1.2 billion, or VND16-18 million per square meter.

The project developer has confirmed that the number of transactions with Viet Kieu accounted for 20 percent of total transactions in the last month, since the new policy on allowing foreigners to buy Vietnamese houses took effect.

Techcomreal Corporation’s CEO Nguyen Xuan Loc noted that the circulars guiding the implementation of the laws on allowing Viet Kieu and foreigners to buy houses still have not been released; therefore, it is still too early to say by what percentage the number of real estate transactions by Viet Kieu would increase. However, he is confident about the high demand from this group of customers.

The real estate products that most attract Viet Kieu include beachfront villas, apartments, front-street houses and villas in the districts of 2, 7 and 9. The attractive characteristic of the products is that they can be leased, and the value of the products remains stable.

Loc said there were three reasons that prompted Viet Kieu to pour money into the real estate sector.

First, the domestic real estate market is in the first months of recovery after a long recession. Second, the new policies, from allowing foreigners to buy houses to allowing transactions not to be made via trading floors, tend to support the strong rise of the real estate market. Third, many Viet Kieu from East Europe and Asia have succeeded with their investment projects here.

VNE