“Hesitate, and you will miss the chance for a great deal,” he says.
The 39-year-old Briton, who has lived in HCMC for 15 years, used to rent houses, presuming foreigners could not own property.
However, after marrying a Vietnamese woman last year, he decided to explore the market and discovered that foreign ownership is allowed. He quickly noticed, however, that property prices were rising sharply.
He and his wife started their search in December 2023, initially looking at apartments in the Thao Dien and An Phu neighborhoods with a budget of VND5 billion (USD$197,430). But they either did not meet their preferences or exceeded their budget.
By early 2024 they had found a suitable apartment, but their financial situation did not allow them to buy it since his wife struggled to sell her condominium in Go Vap District.
When Bennett and his wife returned to the apartment three months later, it remained unsold but the price had risen by 20% to VND6 billion.
Eventually they found a similarly priced apartment on Mai Chi Tho Street that met his needs with convenient access to central districts, his workplace and essential services.
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The apartment of Oliver Bennett and his wife in Thu Duc City, HCMC on Nov. 6, 2024. Photo provided by Bennett |
Foreign buyers like Bennett have been increasingly interested in buying properties since Vietnam eased ownership policies in 2015.
They are allowed to buy 30% of units at new apartment projects, and La Kim My Duyen, sales director at IQI Real Estate Group, says demand frequently outstrips supply in HCMC’s Districts 1, 4 and 7 and Thu Duc City.
Some 70% of foreign buyers are from Asia, mainly Singapore, Hong Kong, China, Taiwan, and South Korea, and are typically aged between 35 and 45.
A study by CBRE Real Estate Group revealed a preference among foreigners for premium apartments, and they have bought more than 3,000 high-end properties in the city.
Duyen attributes the rise in foreign house ownership to two main factors.
Firstly, foreign investors see opportunities for high returns, especially with the rental yields in HCMC and Hanoi reaching 6-7% in 2015-19, she points out.
Secondly, Vietnam’s stable economy and rising social indicators make it an appealing choice for expats to settle in this country, especially those who want to retire and get married.
The Savills Residential Prime Index shows that luxury apartments in HCMC are 14% cheaper than in the Thai capital Bangkok and 50% less than in Singapore, making them attractive to foreign investors.
Troy Griffiths, deputy managing director of Savills Vietnam, says policy shifts also play a significant role in this trend.
Before amendments were made to the Land Law in 2015, foreigners often bought houses by acquiring long-term leases due to restrictions on ownership. But this practice is now prohibited, they have turned to primary market property purchases, particularly condominiums that offer both capital gains and rental yields.
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The bedroom inside Leung’s apartment in Thu Duc City. Photo provided by Leung |
For Bowie Leung, a Hong Kong businessman living in Vietnam since 1989, buying apartments in Vietnam is a strategic investment.
He owns 10 apartments in District 7 and Thu Duc City, initially buying one for personal use and later acquiring the rest as investments.
“Property here is not significantly cheaper than elsewhere in the region, but it is a solid long-term investment,” he reckons.
He has followed Vietnam’s real estate market since 2000, and sees well-located properties in Districts 7 and 9 and Thu Duc City as “gold mines.”
Vietnam’s rapid economic growth, a young and urbanizing population, a stable policy environment, and a growing middle class make the country an ideal investment destination, he says.
In the last three years he has also found the buying process easier.
He recently bought a new 70-square-meter apartment in Thu Duc City with three bedrooms, a view of District 1 and green spaces nearby, calling it an ideal retirement home. “Vietnam feels like my second home,” he says.
