Vietnam quickly becoming Asia’s latest property hotspot
With Hong Kong and mainland prices going through the roof, investors are looking overseas for more affordable targets
Vietnam is fast becoming the region’s hottest property market for Hong Kong and mainland Chinese investors, as prices at home continue to go through the roof.
Alex Shen, a Hong Kong-based finance industry worker, agreed to buy a luxury three-bedroom apartment in a new district in Ho Chi Minh City last month for HK$3 million (US$385,000), and hopes to see his new asset appreciate quickly in value.
He has paid an initial deposit of HK$30,000, and will fly to Vietnam shortly to visit the project for the first time, and decide then if he plans to pay the rest.
“Home prices in Vietnam are still very cheap compared with Hong Kong or mainland China,” said Shen. “And with the local government keen on attracting buyers, through various stimulus measures, this looks like a big chance to win.”
Shen already owns a flat in Hong Kong but says the prices there are now too high, pushing he and many of his friends to look overseas.
A member of Asean, Vietnam only opened up its property market to foreign investors in 2015, later than Thailand and Malaysia. Developers are allowed to sell 30 per cent of units in each building to foreigners. Encouraged by fast economic growth, supportive government policies and low entry costs, home prices in the country’s two largest cities, Ho Chi Minh City and Hanoi, have already seen considerable growth in recent years.
