First, you speak of Vietnam's GDP, but GDP speaks nothing about the prosperity of individuals. The economy in Vietnam is actually not doing so good in terms of the people. But that doesn't even matter because Vietnam's economic growth rate has little to do with its real estate prices. I know the real estate market in Vietnam pretty well and it is nothing short of a joke. No sane, intelligent foreigner would buy in HCMC. However, foreigners looking to clean their money might. HCMC is the second least affordable market in the WORLD with insane prices due to dirty money, corruption and a government that refuses to release land at reasonable prices so land either sits vacant for decades or else is sold to developers are insane prices forcing them to develop high priced condos which are bought by the people in Vietnam who have the money (90% of which received the money by illegal means). And why would foreigners buy in Vietnam when the quality is not good, the prices are too high and the infrastructure is nonexistent? They will buy in Bangkok every time over Saigon. The developments are 100X better in design and quality of materials. Vietnam's developers are all local and they design projects with a war camp look. Most look terrible. They need to incentivize western developers and architects to come in and boost the developments like Thailand has done. Thao Dien is in a major flood zone and there's nothing there except western establishments. But what type of westerner comes to Vietnam to be around westerners and eat at western restaurants? D1 and the adjacent portion of D3 are where all of the action is but there is almost nothing for sale to foreigners in these districts. @10:08 and that 4% yield you claim is actually a gross yield. After rental agent fees and monthly management fees it will be around 3.3% yield which is terrible. Even 4% yield is terrible. You can get 5.8% from the banks. The government needs to clean up its act and develop projects for the middle class that aren't 50 KM away from the city center. How else do they expect the economy to grow and for people to advance if they cannot afford housing? Vietnamese middle class work hard and they need some hope for their future. The next 25 years is Vietnam's window of opportunity to raise its living standards significantly. After that 25-year period the working population will age fast. If Vietnam fails to elevate its status and advance significantly by the next 25 years, it will remain a low income country. A call to action is needed, but I fear the government does not understand what's going on sufficiently. Even if they did, it takes too long for them to do anything due to the ridiculous bureaucracy.
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Nice apartment!
Thank you!
First, you speak of Vietnam's GDP, but GDP speaks nothing about the prosperity of individuals. The economy in Vietnam is actually not doing so good in terms of the people. But that doesn't even matter because Vietnam's economic growth rate has little to do with its real estate prices.
I know the real estate market in Vietnam pretty well and it is nothing short of a joke. No sane, intelligent foreigner would buy in HCMC. However, foreigners looking to clean their money might. HCMC is the second least affordable market in the WORLD with insane prices due to dirty money, corruption and a government that refuses to release land at reasonable prices so land either sits vacant for decades or else is sold to developers are insane prices forcing them to develop high priced condos which are bought by the people in Vietnam who have the money (90% of which received the money by illegal means).
And why would foreigners buy in Vietnam when the quality is not good, the prices are too high and the infrastructure is nonexistent? They will buy in Bangkok every time over Saigon. The developments are 100X better in design and quality of materials. Vietnam's developers are all local and they design projects with a war camp look. Most look terrible. They need to incentivize western developers and architects to come in and boost the developments like Thailand has done.
Thao Dien is in a major flood zone and there's nothing there except western establishments. But what type of westerner comes to Vietnam to be around westerners and eat at western restaurants? D1 and the adjacent portion of D3 are where all of the action is but there is almost nothing for sale to foreigners in these districts.
@10:08 and that 4% yield you claim is actually a gross yield. After rental agent fees and monthly management fees it will be around 3.3% yield which is terrible. Even 4% yield is terrible. You can get 5.8% from the banks.
The government needs to clean up its act and develop projects for the middle class that aren't 50 KM away from the city center. How else do they expect the economy to grow and for people to advance if they cannot afford housing? Vietnamese middle class work hard and they need some hope for their future.
The next 25 years is Vietnam's window of opportunity to raise its living standards significantly. After that 25-year period the working population will age fast. If Vietnam fails to elevate its status and advance significantly by the next 25 years, it will remain a low income country. A call to action is needed, but I fear the government does not understand what's going on sufficiently. Even if they did, it takes too long for them to do anything due to the ridiculous bureaucracy.
Thanks