Hotline:(+84) 898 898 688
Mid-April 2004, a real estate company in Australia to Ho Chi Minh City held a meeting and gratitude to customers. These are customers introduced by the company and sell real estate products in the Australian market in 2016.
Tran Thai Nhu, director of a pharmaceutical company in District 5, HCM City, said that in the beginning of 2016, she has more than $430 million and wants to invest in the real estate market by looking to buy a villa in a Riverside project in District 7. However, the price of this villa is up to more than $860 million.
“I do not want to borrow more money from the bank to own this villa, because the interest rate for buying real estate in Vietnam is quite high, plus the domestic market is always fluctuating.
“Except for some unforeseen reasons such as the need to settle down, but to buy a house for investment purposes, I still recommend that people choose projects in Vietnam.”
Then, I’m introduced by a friend, I decided instead of investing in real estate in the country, I spent that money looking to buy a villa in Australia.
As advised by companies in Australia and agents in Vietnam, along with inquiries from many sources, I see the real estate market here is stable, prices increase quarterly, procedures are not cumbersome, while the bank here supports foreigners to buy houses to 60% through the guarantee from consulting firms and lawyers.
In addition, if we calculate the long-term future, we have a son preparing to study in Australia, so homeownership also provides accommodation for children.
After the son finishes his study abroad, the house sold is still profitable, because the payment and selling house is very easy here,” she calculated.
Therefore, some Vietnamese people, in one way or another, have “enlisted” into the United States to buy a home. In particular, the demand for buying houses of overseas Vietnamese has increased in recent years and focused on the US and Australia because the prices are relatively cheap compared to the financial capacity of a part of the rich Vietnamese people.
In addition to the financial stability and welfare issues, the land tenure policy in these countries is quite liberal.
Nguyen Le Van, Director of Business Development for Asia-Pacific of Iwealthpor Real Estate Consultancy Company, said that in recent years, the number of Vietnamese customers poured out real estate investment in foreign rather large. The demand for buying foreigners from the Vietnamese people also quite diversified, from serving the purpose of education for children, settlement and investment.
According to Ms. Van, Australia has a well-known social security system that cares for its people, and it is also stable in terms of politics, the rule of law, and the strength of the financial system.
Therefore, it is not difficult to understand that Australia emerged as a leader in the list of priority buyers of homes for settlement purposes, of which significant Chinese and Vietnamese.
For the purpose of investment, Ms. Van said that the demand is always greater than the supply many times (1-10 ratio) should make the Australian real estate market dynamic and attract investment from all over the world. The steady rise house prices promise lucrative investment opportunities.
Banks provide good financial support, making the opportunity not only for the rich. Even those with average savings also have the opportunity to invest safely and effectively in Australia.
“Currently, there are about 3-4 companies in Vietnam that make real direct connections with Australian project owners. In addition, many other companies specializing in the Canadian, US and Singapore markets are working to connect and consult real estate products for the Vietnamese people,” Van said.
It is reported that in the UK in 2013, in order to attract Vietnamese investors to invest in real estate, the first high-end apartment project in London is officially launched in Ha Noi for £ 7 million /apartment.
Tran Van Tuan, a consultant with the British Immigration Consultancy Company, said that if foreigners buy a house for £ 1 million or more, they will be granted regular visas to the UK. Foreign customers who buy a home from £2 million or more, after 4 years of non-transferable stay, will be considered for British citizenship.
“This is a great privilege of this country for foreigners, in which two years through my company has more than 200 Vietnamese own a home in England,” said Tuan.
According to the analysis of a real estate expert, now the rich Vietnamese are growing rapidly. Many of them have the need to seek investment opportunities, even to settle in foreign countries.
Especially, in some countries like Australia and Canada, immigration procedures are not too strict, they also invite foreigners to settle in, so Vietnamese people pour capital into the foreign real estate market is easy to understand.
In a Southeast Asian market like Singapore, a report from Savills shows that foreigners now own about 30 percent of the country’s real estate market. In particular, the number of Vietnamese-owned homes in Singapore is quite large.
According to the HCM City Real Estate Association, the demand of Vietnamese people to buy real estate overseas has increased sharply in recent years. The evidence is that while the domestic market has been frozen for the years 2011-2013, many have been looking for a safe investment or pouring money to buy property abroad. However, this is an informal investment.
“Much Vietnamese poured money into foreign countries to invest in real estate, many of which are out of stream investment activities, which are illegal because Vietnamese law is tightening foreign exchange flows abroad.
While the market today recognizes lot of people in many forms have transferred money overseas investment, showing that the foreign exchange management has many holes.
The huge influx of foreign currency has been pulled down by Chinese people to buy real estate around the world is a lesson” a representative of the HCM City Real Estate Association representative warned.
Le Hoang Chau, Chairman of HCMC Real Estate Association, said that currently in Ho Chi Minh City, there are only two licensed companies and carrying out real estate transactions abroad, Thu Duc has branches in the US and Hoang Anh Gia Lai Company.
If other companies in Ho Chi Minh City are operating in this field without license by the State, then it is illegal.
Meanwhile, from the perspective of a real estate investor is attracting foreign guests to the project, Mr. Ngo Quang Phuc, Deputy General Director Him Lam Land said that the real estate Vietnam needs to attract customers externally and vice versa is also normal. However, people in this way or other way carry money abroad to buy a home so be cautious.
In addition to the real estate market in Vietnam there are many equally lucrative opportunities, the legal risks of illegal money transfers, the country’s policy risks change or the encounter of badly clues … are issues to consider carefully when buying a house abroad.
“Banks’ interest rates in many countries are almost zero, and their ability to make a high profit is low. There is a wave of buy and sell back time. Therefore, except for some unforeseen reasons such as the need to settle down and buy a house for investment purposes, I still recommend that people choose projects in Viet Nam,” Phuc said.
You are reading the article The Real Estate Market Is Appearing Backflow in the Real Estate category at realestatevietnam.com.vn/. Any information sharing, feedback please email to firstname.lastname@example.org, Hotline (+84) 898 898 688 (24/7).