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Residential Real Estate in Vietnam represents a high potential, strong upside opportunity

The Vietnam property market has been rapidly accelerating in the past several years due to strong demand, both domestic and international, policy liberalization, and diminishing supply. Macroeconomically, Vietnam has largely emerged as a winner in the post-COVID-19 world. Historical GDP in the past several years has been growing at 7% YoY with a large portion of the growth contributing towards a young, emerging middle class who have a cultural affinity to real estate ownership.

Real Estate by the numbers:

22.7%

Increase in apartment prices in Q1 2019 from a year earlier, to an average of US$2,028 per sqm. The average selling price of the luxury sector also increased 64.9% YoY.

300%

Increase in Chinese buyer demand for Vietnam properties in 2018 as Vietnam is rapidly drawing Hong Kong and China investments and becoming a popular investment destination.

61%

Discount in average property price for HCMC relative to Taipei, and 16% less than the average price for Bangkok

20+

Distinct steps needed to close a real estate transaction in Vietnam involving legal, the tax authority, public notary office, real estate developers, banks, agents, and more

Vietnamese real estate is difficult to access especially for expats and foreigners

For expats and foreigners, acquiring property in Vietnam is prohibitively difficult, making access to this valuable asset class out of reach. As with many business processes in emerging markets, real estate transactions are traditionally relationship-based and opaque, making it hard to navigate among the many parties involved to make a deal happen. As a result, expats often pay higher prices or are stuck with access to lower-quality inventory. Lastly, accessing financing in the Vietnamese market is almost impossible for non-citizens as banks are severely restricted by regulations to provide home-financing to foreigners.

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