Vietnam has slowly been recognized as a hotspot for property sale and investment. The country’s economy has been booming in the past few years, both as a result and because of, property sale. And even though the property business in the country is not considered as transparent as in other, more developed countries, it is evident that there is still a significant development. Ho Chi Minh City, for example, being the biggest city in the country, has seen fast economic growth due to major infrastructures and developers extending their services to cater foreign investors who are looking to buy property in Saigon.
Consequently, finding an apartment for sale at HCMC in Vietnam involves making all the right decisions. Whether you want to buy, lease, or sell a condominium, it is important to have even just a bit of basic knowledge on how things are being run in the market. Whether you’re a businessman from Hong Kong or Singapore seeking to expand your business or just looking to acquire more properties, it is crucial to understand different conditions and factors that contributes to Saigon property prices before engaging in new project launches and buying a realty. After all, property investment policies have been made understandable and more attractive to foreign investors for the purpose of prospering the economic status of the country.
What are realties?
Realty or real estate is a property of land including all buildings currently built on it. It also includes all the natural resources within its perimeter. It is a part of the broader term, real property which includes rights and ownership of that land even if it is undeveloped. It can be classified in three categories:
• Residential- houses, condominiums, apartments, undeveloped land, and etc.
• Commercial- office buildings, retail store buildings, and etc.
• Industrial- factories, farms, and etc.
Selling, buying, or renting real property in Saigon will be very different between each of these categories. Buying apartments will be very different from investing in commercial buildings, for example. The real estate market is mainly dependent on factors like property tax, employment rate, crime rate, and economy. Commercial realties, as the name suggests, caters to commerce. It can base profitability from restaurant buildings, office buildings, and/or malls standing on the property.
Checking a property for sale and how investors perceive property value
When looking into real estate, it is always important to take many factors into consideration. As mentioned earlier, the conditions affecting residential, commercial, and industrial realties are all different. So, even if you are eyeing a Ho Chi Minh City property at Lancaster Lincoln condominium launch in District 4, taking these factors into account will help weigh the pros and cons of your property investment. More than that, the value of a property should also be discerned upon.
Value of a certain property will be different in the perspective of a local Vietnamese businessman to that of a foreign investor. A local may acquire land through heritage, or through different relationships, or years of pain to earn money to buy the land. Most of the time, this will have no value to the foreigner. So, sometimes they will not understand why “the price is too high”, because to him/her, it may be that the price is the one that determines the workability of the project and not the history of the land.
Having a common understanding of property value will be hard to come by, especially in the case of a local-foreign deal.
Ho Chi Minh City: A wonderland for property sale?
Different condominium prices around central Ho Chi Minh City are also slowly attracting more and more people. Because of the growing population in the different districts, more investors are also beginning to buy real property or engage in property sale within the area. Furthermore, these districts have become a hotspot for foreigners for finding good apartments to invest on due to its strategic location. Here are some of the districts that have been presenting more and more opportunities for real estate.
District 1 (D1) is the central financial and business district in Saigon. It is said that during the colonial period, French architects designed the area, which explains the parks and the tree-lined streets. With major sights like the Independence Palace and the Notre Dame Cathedral, and an increasing number of hotels and stand-alone restaurants, the area would surely be an attractive place for a foreign investor and/or commercial realty buyers.
District 2 (D2) is also more known as the ‘expat area’ of the city. Wealthy Vietnamese have created villas that provide for the tastes of foreigners, mostly Americans, British, and Europeans. In addition to the high-end apartment for sale, district 2 also hosts the upcoming Gem riverside project here in HCMC. This might be because of the natural environment as it is a district that is already beside a river, that makes it a relaxing place to be in. Even then, it is still less crowded compared to D1.
District 4 (D4), even though it is the smallest district in Saigon, has developed to have great upside value. Over the past years new project launches have presented big realty opportunities, which then promoted the district’s progress. While most properties are residential, some commercial projects are beginning to emerge and more and more investors are looking to commit to buying properties for other business endeavors.
Take note though that in some districts, like D2 and D4, there are persisting problems like flooding. But those should not necessarily be problems if you play it smart (i.e. choosing the best location, or timing it right).
Finding a property for sale in Vietnam can spell a lot of advantages for an owner or investor, both local and foreign. Although gaining positive gains will not always be the case, if you consider all the factors right, you may get a lot of benefits. Understanding foreign property ownership, the value that comes with a certain property, and picking the right location all contribute to, not just the property market, but the economy as a whole.
