No one can stop Vietnam from becoming Asia’s hottest investor property market. As house prices in Hong Kong and mainland China continue to rocket through the roof (some may say increase the size of the bubble!), investors are gorging on Vietnamese units for more affordable property investments.
The country’s residential property market is expected to do exceptionally well this year as construction of new buildings is underway and the annual rental yield in Vietnam is 1.5% to 2.5% higher than the rental yield in Hong Kong, Bangkok, and Singapore, according to Vina Capital.
Ho Chi Minh City is the center of economic progress in Vietnam, house prices rose by 7.4% and units cost around US$210.52 per square foot (sq. ft.) with gross rental yield from 5.28% to 6.34%.
Some of the cheapest property in Asia can be found in the busy city of Can Tho, where apartment prices are around US$61.39 per sq. ft. — and with rental yields of 5.38%. In Buon Ma Thuot, units have a price tag of US$95.49 with rental yields ranging from 5.01% to 8.92%.
Non-Vietnamese are not allowed to own land. As a matter of fact, even Vietnamese are not allowed to own land due to the belief that land is collectively owned by the people, but regulated by the Communist State.
However, non-Vietnamese residing in Vietnam are permitted to purchase properties but not the land on which it is built. According to the Housing Law and the Law on Real Estate Business, non-Vietnamese and Vietnamese abroad may legally own, sell, and transfer real properties. Moreover, they may lease the land from the State. A lease period is typically for 50 years and may be renewed at the discretion of the State.