60% of foreign homebuyers in Vietnam look for capital gains

By Minh Anh
Mon, March 18, 2024 | 10:53 am GMT+7

Over 3,000 foreigners bought housing in Vietnam between 2015 and the third quarter of 2023, 60% of whom were buy-to-gain investors, real estate service firm CBRE said in a report.

Buy and hold for capital appreciation remains the most popular strategy for foreigners purchasing residential real estate in Vietnam, according to CBRE’s “Vietnam: Two decades of urban development” report.

Some buyers may opt to let properties out as a temporary option while they wait for sales prices to climb. Very few non-Vietnamese - mainly long-term residents - purchase residential real estate for self-use.

High-end property in Vietnam is attracting foreign buyers. Photo courtesy of Savills Vietnam.

High-end property in Vietnam is attracting foreign buyers. Photo courtesy of Savills Vietnam.

In terms of product type, foreign buyers have displayed strong demand for condominiums, especially units in high-end developments in big cities such as Ho Chi Minh City and Hanoi. Well-located and affordable condominiums with potential for strong price growth have also been the subject of interest from foreign investors, the report adds.

Starting in 2015, the government began removing barriers to foreigners’ acquisition of real estate. The Housing Law 2014, which came into effect in 2015, permitted any foreigner allowed to enter Vietnam to purchase residential properties in the country.

Article 74 of Decree 99/2015 specifies documents proving persons eligible for owning housing in Vietnam. For foreign individuals, they must have a valid passport with an entry verification stamp from Vietnamese immigration authorities and are not eligible for diplomatic privileges and immunities according to regulations.

For foreign institutions, they must be eligible as per Article 159 of the Housing Law and have a valid investment registration certificate or documents permitted by a competent Vietnamese agency to operate in Vietnam that are still valid at the time of signing housing transactions.

While there remains no limit on the number of individual units a foreigner can buy in Vietnam, there is a cap on the percentage of foreign ownership in an individual project. This is set at a maximum of 30% per residential building or no more than 250 landed properties in an administrative unit.

Since the relaxation of restrictions on foreign property ownership, buyers from developed Asian economies including mainland China, Hong Kong, South Korea, Taiwan, and Singapore have accounted for 75% of residential property transactions in Vietnam, according to the CBRE’s report.

CBRE attributes this strong interest to their proximity to Vietnam; the pre-existing presence in Vietnam of large real estate developers from these markets; and Vietnam’s potential for price growth relative to their home markets, all which have experienced periods of rapid price appreciation.

Matthew Powell, director of property service firm Savills Hanoi, has tipped that a handful of Savills Vietnam’s ultra-wealthy foreign clients have been on the hunt for real estate investments in Vietnam since earlier this year.

This was the reason behind Savills’ expansion of its office in Vietnam. The office offers a world-class network of partners, experts, and contacts, providing comprehensive yet tailored and confidential real estate expertise and advice.

Comments (0)
  • Read More
Vietnam high-speed railway should run beyond Hanoi, HCMC on either side: lawmakers

Vietnam high-speed railway should run beyond Hanoi, HCMC on either side: lawmakers

Vietnam’s mega North-South high-speed railway project should be redesigned and extended beyond Hanoi and Ho Chi Minh City as currently planned, several lawmakers have suggested.

Infrastructure - Thu, November 21, 2024 | 6:11 pm GMT+7

Vietnam-Malaysia relationship upgraded to comprehensive strategic partnership

Vietnam-Malaysia relationship upgraded to comprehensive strategic partnership

Vietnam and Malaysia have upgraded their relationship to a comprehensive strategic partnership, the highest level in the former’s diplomatic hierarchy.

Politics - Thu, November 21, 2024 | 5:21 pm GMT+7

Petrovietnam units sign LNG supply deal for trial run of Vietnam’s first LNG power plants

Petrovietnam units sign LNG supply deal for trial run of Vietnam’s first LNG power plants

PV Power and PV Gas, two units of state-owned Petrovietnam, have signed an LNG supply deal for trial operation of Nhon Trach 3 and Nhon Trach 4, Vietnam’s first LNG-to-power plants.

Energy - Thu, November 21, 2024 | 4:40 pm GMT+7

Sufficient first phase funds ensured for Vietnam’s new mega airport: transport minister

Sufficient first phase funds ensured for Vietnam’s new mega airport: transport minister

Minister of Transport Nguyen Van Thang affirmed Wednesday that funding would be secured for building the Long Thanh International Airport, set to become Vietnam’s biggest.

Infrastructure - Thu, November 21, 2024 | 3:53 pm GMT+7

VAFIE to organize workshop on amendments to horse racing, football betting rules

VAFIE to organize workshop on amendments to horse racing, football betting rules

The Vietnam’s Association of Foreign Invested Enterprises (VAFIE) and The Investor will organize a workshop on suggestions to amend the government’s Decree 06 on horse racing, greyhound racing and international football betting services.

Economy - Thu, November 21, 2024 | 2:38 pm GMT+7

Vietnam Politburo okays international, regional financial centers in HCMC, Danang

Vietnam Politburo okays international, regional financial centers in HCMC, Danang

Vietnam’s highest decision-making body, the Politburo, has greenlighted the establishment of an international financial center in Ho Chi Minh City and a regional financial center in the central city of Danang.

Economy - Thu, November 21, 2024 | 1:50 pm GMT+7

Singapore's Platinum Victory seeks to gain veto at Vietnam’s REE

Singapore's Platinum Victory seeks to gain veto at Vietnam’s REE

Singaporean fund Platinum Victory Pte. Ltd. has registered to buy more shares of Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corporation (REE) to achieve the vetoing power in the latter.

Finance - Thu, November 21, 2024 | 11:29 am GMT+7

Posco keen on investing in Vietnam's $2.2 bln LNG power project

Posco keen on investing in Vietnam's $2.2 bln LNG power project

South Korea’s steelmaker Posco is eyeing to invest in the $2.2 billion Quynh Lap LNG-fired power plant project in Vietnam’s central province of Nghe An.

Energy - Thu, November 21, 2024 | 10:42 am GMT+7

Vietnam firm Hoa Lam to build $212 mln Aeon Mall in Mekong Delta

Vietnam firm Hoa Lam to build $212 mln Aeon Mall in Mekong Delta

The Mekong Delta city of Can Tho has accepted a subsidiary of private multi-sector Hoa Lam Group as the investor of the Aeon Mall Can Tho commerce and service center.

Industries - Thu, November 21, 2024 | 10:31 am GMT+7

Vietnam startup expert closes Monkey in Black coffee shop

Vietnam startup expert closes Monkey in Black coffee shop

Tung BT (Tran Thanh Tung), a popular startup expert and social media influencer, is closing his final coffee shop in Ho Chi Minh City, ending a 10-year journey of the "Monkey in Black" brand.

Companies - Thu, November 21, 2024 | 8:16 am GMT+7

Vietnam-Singapore ties set for elevation to comprehensive strategic partnership

Vietnam-Singapore ties set for elevation to comprehensive strategic partnership

Vietnam and Singapore will elevate bilateral ties to a comprehensive strategic partnership and Singaporean Prime Minister Lawrence Wong will visit Vietnam next year.

Politics - Wed, November 20, 2024 | 8:16 pm GMT+7

Vietnam’s Vingroup establishes robotics firms, with co-founder’s 2 sons as major shareholders

Vietnam’s Vingroup establishes robotics firms, with co-founder’s 2 sons as major shareholders

Vingroup, Vietnam’s largest private conglomerate by ecosystem, has set up a robotics unit as it moves to ramp up its industrial-high technology ecosystem.

Companies - Wed, November 20, 2024 | 6:17 pm GMT+7

E-commerce, digital platforms likely to pay taxes on behalf of their sellers in Vietnam

E-commerce, digital platforms likely to pay taxes on behalf of their sellers in Vietnam

E-commerce and digital platforms will have to declare and pay taxes on behalf of their sellers starting January 1, 2025, according to a draft amendment to the Law on Tax Administration.

Finance - Wed, November 20, 2024 | 5:37 pm GMT+7

Flexibility, adaptability key to effective leadership: PepsiCo Vietnam exec

Flexibility, adaptability key to effective leadership: PepsiCo Vietnam exec

In a rapidly changing world, leaders need to develop the skill of being “as flexible as seaweed,” says Nguyen Viet Ha, general director of PepsiCo Foods Vietnam.

Companies - Wed, November 20, 2024 | 3:52 pm GMT+7

Central Vietnam province okays $88 mln automobile part project

Central Vietnam province okays $88 mln automobile part project

Binh Thuan province's industrial zone authority on Tuesday granted an investment registration certificate to a $88 million project invested by Taiwan’s NeoSCM Limited.

Industries - Wed, November 20, 2024 | 3:44 pm GMT+7

Thai packaging firm Thantawan Industry makes inroad into Vietnam

Thai packaging firm Thantawan Industry makes inroad into Vietnam

Thantawan Industry Public Company Limited, a leading Thai manufacturer of premium plastic packaging, has inked a deal for a 30-year factory lease, marking its inaugural investment in Vietnam.

Industries - Wed, November 20, 2024 | 3:34 pm GMT+7