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Vietnam: From Pariah To Paradise – Why Now May Be The Time To Buy

Vietnam: From Pariah To Paradise – Why Now May Be The Time To Buy

By Team Agorafy August 16, 2016

If a country’s affluence can be measured by the number of golf courses it’s building, Vietnam is either on the rise or setting up to dominate the PGA. Currently there are 38 golf courses in the country with another 65 planned or under construction. It’s a measure of the country’s growing tourism industry, and of the buyers who are deciding to call this former war-torn part of the world home. A tropical climate, cheap living and good international schools have been helped by a new law encouraging expats to buy real estate. Now a construction boom in luxury property is engulfing the country.

Related: The Mixed Bag of Middle Eastern Real Estate

Any foreigner with a valid visa (and maybe a good set of golf clubs) can now buy property with a 50-year leasehold, with options for an extension. There are restrictions: foreigners can only purchase 30 per cent of any single condominium building or a maximum of 250 houses in any one administrative ward.

Vietnam has been down this fairway before, though prior to the global real estate recession in 2008. It only got up to par in 2014 and now cranes rise over the skyline of Ho Chi Minh City yet compared to the rest of Asia it’s a steal. In Ho Chi Minh, prime real estate is $4-6000 per square meter cheaper than Bangkok. Rental yields in the country are 1.5 to 2.5 per cent higher than those in Hong Kong, Bangkok and Singapore, according to VinaCapital.

Ho Chi Minh City – Circa June 2010. Editorial Credit: Stephen Bures / Shutterstock.com

There are downsides though. In July Vietnam’s environmental issues were highlighted when their government blamed a toxic discharge from a Taiwanese-owned steel plant (Formosa Ha Tinh Steel Corp) for massive fish deaths that decimated fishing and tourism. Formosa admitted to being in the rough and has pledged $500 million for an environmental clean-up.

And there is also the question of how to get money out of Vietnam once a property has sold. So far, according the Financial Times, the issue has yet to be truly tested. What cannot be denied, however, is that Vietnam’s potential to be a global tourist hub. In 2015, 7.94 million holiday makers visited Vietnam, the highest numbers ever there. Direct international flights from Asia to Da Nang more than doubled from 1,045 in 2012 to 2,521 last year. Resorts like The Point in Da Nang, replete with luxurious golfing facilities, already sold out. Oh, how things have changed.

 

Team Agorafy

ABOUT THE AUTHOR Team Agorafy

ABOUT THE AUTHOR Team Agorafy

Our mission is to be the most accurate resource for commercial listings, residential listings, and property information, allowing users to make highly-informed decisions based on current market data.

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