Since 2014, foreigners have been granted the right to purchase real estate in Vietnam. This has significantly increased the liquidity of local apartments and stimulated the development of new complexes. Currently, there is a trend of growth in the Vietnamese real estate market, partially due to the influx of foreign investment.
Vietnam is a popular holiday destination and purchasing a residence here is a good option for profitable investment and passive income. Foreigners are allowed to own real estate in the country for 50 years with the possibility of extending this period. During the validity of the long-term right, the property can be sold, rented out or passed on through inheritance.
Liquidity is an important criterion for investors when evaluating real estate. To select the most liquid apartments, it’s important to consider general market trends and understand which properties have the highest demand. Let's take a closer look at these aspects.
Content:
- Real estate market trends in Vietnam
- Price and liquidity
- Secondary or primary housing
- Choosing a location
- Selection and purchase of liquid real estate
Real estate market trends in Vietnam
By the end of 2023, the Vietnamese economy will have shown stable growth. In the third quarter of 2023, the country's GDP increased by 5.33% compared to the same period in 2022. This is attributed to the government's policy of reducing interest rates on loans, industrial development, increased sales of local goods and the recovery of tourist flows after the lifting of pandemic-related restrictions.
Active urbanisation and infrastructure development in Vietnam are contributing to an increasing demand for housing, especially in major cities such as Hanoi, Da Nang and Ho Chi Minh City.
A survey by the Vietnamese Brokers Association found that up to 60% of investors who have previously purchased a property in the country are willing to continue investing in residential property on the condition of lower interest rates on loans.
Since the beginning of 2023, Vietnam has issued about 20 new regulatory documents to support the real estate market. As a result, hundreds of projects have been relaunched, further strengthening the market.
The number of real estate transactions in the country is gradually increasing. More and more offers that meet the needs of modern buyers are appearing on the market. In the third quarter of 2023, about 6000 transactions were recorded, which is 1.5 times more than in the second quarter and more than twice as much as in the first quarter. The growing real estate market at the end of 2023 sets a positive momentum for 2024.
Price and liquidity
The cost of real estate is one of the most important factors determining its demand. Properties in the average price range have high liquidity. Apartments priced up to USD 412,000 are the most popular in the market. Such apartments are ideal for rental and resale. The average annual return on Vietnamese real estate is between 4% and 6%.
Buying apartments during the construction phase is a good investment option. In this case, the cost of the property is most attractive because the buyer makes a direct agreement with the developer without the involvement of intermediaries. The developer offers not only a favourable price but also convenient instalment schemes. The purchase price can be paid in instalments as the construction progresses and partially after its completion. When the complex is put into operation, the cost of living usually increases, which allows investors to resell the apartments at a profit. The liquidity of such a property will be higher than that of secondary housing, as new housing is in high demand among buyers.
Secondary or primary housing
In Vietnam, apartments on the secondary market are usually located in mid-rise and high-rise buildings built in the 1980s and 1990s. Many of these buildings have outdated layouts, finishes and designs. They often lack amenities. Apartments in older buildings are generally considered economy class and attract more interest from local buyers.
Foreign investors and expatriates prefer new developments. Such complexes are built in bustling areas with quality infrastructure. Modern apartments have functional layouts, panoramic windows and stylish finishes, and often include amenities such as a gym, pool, concierge service, security and more. In addition, modern buildings offer residences of varying sizes, from small studios to luxurious penthouses that occupy half or the entire top floor. Some developers offer fully furnished and move-in-ready apartments, which is convenient for investors who plan to rent the apartment immediately.
Choosing a location
Apartments located in popular cities are characterized by high liquidity:
- Hanoi: The capital of Vietnam with a rich cultural and historical heritage. Housing here is in high demand due to its proximity to business and trade centres, schools and other infrastructure facilities. For investment, it's advisable to choose complexes near metro stations, railway stations, major shopping centres, universities and so on.
- Da Nang: A coastal city with sandy beaches and hilly landscapes. Resort properties located by the sea or near local attractions such as Ba Na Hills Park are preferred.
- Ho Chi Minh City: A megacity with the country's largest international airport. The most popular location for liquid residential purchases is on the west bank of the Saigon River. Apartments in modern skyscrapers with excellent internal infrastructure are in high demand.
A good option for buying apartments for rental income is Vietnam's popular beach resorts:
- Nha Trang: A coastal city in the southern part of the country. Numerous islands, picturesque beaches and excellent diving spots make it an attractive location.
- Phu Quoc: An island with world-class beaches and the Phu Quoc National Park.
- Mui Ne: A resort in the southeast of the country. Local sandy beaches and windy weather during the dry season attract many tourists interested in windsurfing, kitesurfing and sailing.
Selection and purchase of liquid real estate
To choose highly liquid and profitable apartments in Vietnam, it's recommended to consult professional brokers. Specialists can help you choose a suitable complex and apartments with good market demand, allowing for a stable income from rental.
You can explore the Vietnamese market through the catalogue on our website. We gather current offers from reputable developers and real estate agencies, allowing you to compare the prices and quality of different properties and choose the most attractive options for your future purchase.