Vietnam’s hospitality market has become more vibrant following the Ministry of Construction’s proposal to seek the government’s approval for foreigners to buy hospitality projects in Vietnam.
According to the current legal framework of Vietnam’s Housing Law 2014, foreigners are allowed to buy, lease-purchase project houses belonging to housing developers, regulated with no more than 30% of the apartments in a common building. These investors will be able to own real estate for 50 years, and can be extended for another 50 years when needed, for a total ownership term of 100 years. By the end of 2019, there were nearly 800 foreigners, including individuals and organizations, who have bought houses in Vietnam. However, this number does not accurately reflect the attractiveness of Vietnam’s real estate.
Recently, Vietnam being recognized as one of the 20 fastest growing destinations in the world, and with new moves in reforming new real estate rights about to be enacted, the real estate market is expected to attract more and more attention from foreign investors, especially in the field of resort real estate, in potential local areas for sea tourism. According to the Korea Wealth Report 2019 recently published by KB Financial Group Research Institute, rich South Koreans prefer Vietnam for overseas real estate investments. Around 57.1 per cent of 400 South Koreans with assets worth over a billion won ($831,000) want to invest in Vietnam.
Indeed, the opening of the hospitality market for foreign buyers will bring triple benefits to Vietnam by improving service quality, increasing capital for tourism infrastructure and retaining travellers to the market. Thailand is a successful example for this strategy.
The latest report by real estate firm DKRA Vietnam shows increasing supply in the hospitality markets in Ho Chi Minh City and neighbouring provinces in the first quarter of 2021. Up to 778 resort villas at six projects came into the market in the first quarter, 3.2 times the number in the previous quarter, and 26 times as much as a year earlier. The absorption rate was 25 per cent (196 villas sold), almost twice the number from the fourth quarter of 2020.
In the resort real estate segment in the Ba Ria-Vung Tau area, the 5-star Ho Tram Angsana Residences project is being evaluated as bringing a great potential for domestic and foreign investors. Being built and developed by Madison Land Co., Ltd., managed and operated by Banyan Tree, the world’s leading resort real estate management group, Ho Tram Angsana Residences also possesses outstanding advantages, s satisfying demanding upper-class customers, and providing attractive profitable investment opportunities.