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Vietnam, is located in Southeast Asia. The country’s history has been shaped by its location between China and India. Straddling lines of trade between north and south, east and west.
Vietnam has between 95 million people where 50% are aged below 35, making it one of the most populous countries in the world. The capital, Hanoi, is located in the north, while the country’s largest city, Ho Chi Minh City (formerly Saigon), is in the south.
In July 2015, the Vietnamese Government introduced the Vietnamese Law on Residential Housing (LRH), which made it remarkably easier for foreigners to buy property.
Under the new Housing Law, foreign individuals who are permitted to enter Vietnam with entry visas will be entitled to buy and own residential houses, as well as use and sell the residential houses. Foreign individuals must also pay tax in accordance with prevailing laws.
The law does not impose any restrictions on the number of residential properties that a foreigner can buy in Vietnam. However, a foreigner is limited to ownership of up to 30% of the total number of units in an apartment building and up to 250 residential houses in a ward administrative unit. The period of house ownership is 50 years, with the possibility of an extension.
The relaxed regulations towards foreigners, along with comparatively low property prices, make Vietnam a preferred location among foreign buyers. Especially from Mainland China, Hong Kong, Taiwan, Singapore, and Korea.
Top Reasons to invest in Vietnam
- Capital appreciation
- Good rental yields with high demand
- Booming tourism
The Real Estate Market in Ho Chi Minh City
In the second quarter of 2019, there’s an increase of 21.6% compared to 2018 in Ho Chi Minh. The average price for high-end property rose as much as 52.9%. The great increase of prime real estate prices in the central area is mainly due to the launch of new luxury projects and scarcity of land.
The Real Estate Market in Hanoi
Hanoi gets more attention and mainly due to escalating real estate prices and a limited supply in Ho Chi Minh. The average price is 30% lower than that Ho Chi Minh and the year-on-year price growth has been at 6.9%. Hanoi now gets more attention as the capital receives much foreign investment which offers high yields.