Properties in Vietnam
As Southeast Asia’s third most populous nation, Vietnam is one of the fastest growing countries in the world. Seen as an attractive location for manufacturing companies, we can expect Vietnam’s growth to continue in the foreseeable future.
The domestic property market is full of potential that foreign home investors can make the most out of. According to VinaCapital, in 2017, rental yields in Vietnam’s major cities are 1.5-2.5% higher than those in Hong Kong, Singapore and Bangkok. Prime real estate in Ho Chi Minh City is priced at around $3000-$5000 USD per square meter, around 5% the price of Hong Kong. In addition, Vietnam’s recovery from the 2009 housing bust and a growing economy have propelled the growth of property prices. The comparatively low prices, the huge potential for economic growth and the drastic improvements in infrastructure point towards growing Vietnamese property prices in the future that guarantee any foreign investor a satisfying return.
Vietnamese foreign policies have also become more friendly to investors, reducing some of the bureaucracy involved in purchasing Vietnamese property. From July 2015, any foreigner who possesses a valid visa is able to buy property on a renewable lease. Investors interested in Vietnamese property also need to be aware of the following things:
- From May to October, the monsoon season occurs in South Vietnam.
- Rental practices in Vietnam lean towards pro-landlord
- Nonresidents/foreigners must pay income tax at a flat rate on any income sourced from Vietnam