Vietnam’s growing economy attracts more luxury real estate buyers
06/08/2019 17:53 | Source: Mansion Global
Across the country, particularly in Ho Chi Minh City (HCMC), luxury real estate has spurred a wave of local and overseas interest and investment, said experts.

According to local experts, the high-end real estate market first took hold in Vietnam’s biggest and busiest city before spreading to the capital, Hanoi, and elsewhere. Now, interest in high-end real estate is expanding beyond the country’s borders as an increasing number of individuals find themselves with the means to invest globally.

After its opening up to foreign investment and joining the WTO, Vietnam is enjoying an assurgent trajectory. In 2018, Bloomberg reported that Vietnam, once one of the poorest countries in the world, rsaw 7.1% economic growth, making it one of the best performers in the world.

Vietnam real estate market

The forecast of the local property sector remains positive.

The recent Economic Insight: South East Asia report, compiled by the Institute of Chartered Accountants in England and Wales, showed Vietnam’s economy is expected to grow 6.7% this year, the fastest rate in Southeast Asia.

Its emergence as a global manufacturing and export powerhouse has also seen personal wealth explode. According to The Wealth Report 2019, published by British real estate consultancy Knight Frank, the number of millionaires in Vietnam is expected to grow from 12,327 in 2018 to 15,776 by 2023, a healthy increase of 28%.

Thus, rich Vietnamese are investing beyond the country’s borders. But “due to outward currency restrictions, it’s done a little more quietly than other countries,” said Troy Griffiths, deputy managing director at Savills Vietnam.

However, that doesn’t mean it isn’t done.

Dung Duong, Senior Director, Head of professional services at CBRE Vietnam, said: “There are more and more Vietnamese investing in overseas property. A decade ago, only those who had relatives would buy properties overseas, so that they could live close to their parents or siblings. But these days, there is an increasing trend of wealthy parents sending their children to study internationally, and these parents are also investing in overseas property for their children.”