Saturday, 21 January 2017 18:27

    Property market to continue strong showing this year Featured

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    The property market will develop strongly in all segments this year, building on last year’s robust recovery, experts tell Việt Nam News.

    The Vietnamese market will witness another strong year in 2017. The economy is performing well and is considered one of the best performers in Southeast Asia. We expect to see considerable activity in all sectors of the market with positive focus on low-mid end residential in cities, as well as the office hospitality and industrial segments in HCM City. Based on the considerable number of enquiries we are receiving from both foreign and domestic investors, we expect a record year for M&A activity.

    Since the change in foreign ownership legislation in July 2015, we have witnessed a considerable increase in foreigners buying property in Việt Nam. During the 5-year pilot programme, prior to 2015, approximately 200 residential units were bought by foreigners. Since the change of legislation, we understand over 1000 units have been transacted. This demonstrates that there is genuine interest from foreigners to invest in Việt Nam and we expect that will continue on the same trajectory in 2017.

    Whilst we have seen an increase in sales volumes over the past 18 months, challenges still remain. At present, foreign buyers do not have the ability to mortgage their property; therefore, all transactions have been cash purchases. This generally limits the average transaction price to approximately US$250,000-300,000. If legislation changes and banks obtain the relevant licensing to start lending to foreigners, we expect sales volumes to increase significantly. Other challenges come from lack of transparency, understanding of legal framework, the need to visit Viet Nam to get a valid visa, opening a bank account in Việt Nam and concerns about taking money out of the country. Most of these concerns can now be easily addressed if the purchasers go through the correct procedures and channels.


    Read 284 times Last modified on Saturday, 21 January 2017 18:35
    More in this category: Economy in Northeast Vietnam »

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