Coastal Villas Hunted by Foreign Investors.
According to top real estate trading floors in two major cities of Ho Chi Minh City and Hanoi, a large number of inquiries for coastal villas are sent from foreigners.
Along with recovery of the whole market, a large capital inflow is being poured into Vietnam real estate market, especially the resort and villa segment. Coastal Villas Hunted by Foreign Investors.
The rich, both Vietnamese and foreigners with strong financial capacity are seeking for ideal places for relaxation in the coastal areas of Vietnam. Coastal Villas Hunted by Foreign Investors.
Statistics from prestigious agencies shows, every year since 2010, and foreign investors have poured an average of over US$10 million as FDI into the country. Reportedly, property market has got one-tenth of these.
In term of remittance, Vietnam is among 10 largest remittance-receiving countries worldwide. Last year, the country received US$12.5 billion as remittances. Consultancy firm PDReal said, the housing sector has made up about 17-20% of total remittances, equivalent to about US$2-2.5 billion per year.
According to General Director of PDGroup Vietnam, Eric Le, Vietnam is recording a huge amount of capital inflows. However, supply for foreign investors in the real estate market is not diverse.
Sharing the same point of view, many economists says, in the context of the investment environment in Vietnam today, foreign investors do not have many investment opportunities in the real estate sector despite multiple investment channels. Coastal Villas Hunted by Foreign Investors.
Currently, the interest rate for savings drops too low. With only 5% per year, it will hardly attract investors. Price and liquidity of gold in recent times tend to be low, especially in the first quarter of 2015. Other investment channels such as foreign currencies and securities have been showed insecurity and erratic fluctuations for many months.
Meanwhile, according to calculations by consultancy agencies, profit from investing in resort property can reach 8-9%. It has created a strong motivation for the decisions to invest money or buy this type of product.
We can be more optimistic about the market prospects of resort and villa segment in the near future thanks to the amended real estate business law taking effective since July 1st. The amended law will ease the regulations for foreigners and overseas Vietnamese to buy houses in Vietnam.
Moreover, Ministry of Construction has recently published the final draft of Decree intended to provide guidance to follow the amended housing law. Accordingly, foreign ownership is valid for 50 years, and can be extended by the same term. Coastal Villas Hunted by Foreign Investors.
If the proposal of Ministry of Construction is approved, foreigners will own houses in Vietnam within 100 years. That will be very important measure to help remove one of the major bottlenecks of Vietnam real estate market, especially in the upper segment as luxurious resorts and villas along the coast.
Actual movements on the real estate market also showed, consumer confidence has really come back to this segment. Survey results of the international consultancy agencies like PDGroup Vietnam and PDReal revealed, thanks to great demand, the liquidity and price of the villa segment in many regions have achieved significant growth compared to end of 2013 with an average growth of 5-7%. Coastal Villas Hunted by Foreign Investors.
(Source: Bizlive)
