Vietnam’s economic growth attracts real estate property buyers
Vietnam’s economy is showing excellent rates, so it’s not surprising that this country has become attractive to investors. Moreover, progress has been observed for 24 years. Previously, Vietnam was a typical socialist state with an economy focused only on itself. There was no access to investors. However, the government in 1995 opened the country to foreign capital, and people immediately began to invest. This led to the fact that Vietnam has become an attractive region for investment in real estate property and other types of investments.
Why investors are actively investing in the economy of Vietnam
Over the past 20 years, Vietnam has shown stable GDP growth at 6% per year. This is a terrific figure, especially in the background, to put it mildly, non-progressive neighbors such as Cambodia and Laos. At the end of the twentieth century, the Vietnamese government lifted restrictions on foreign capital. The huge population, cheap labor and large areas for the construction of the real estate, enterprises, farming made the country attractive for investment.
Conditions for investors in Vietnam are so profitable that the Chinese business became interested in the country. The Chinese managed to reach an agreement with the local authorities on the “relocation” of some enterprises from the southern part of the PRC to the territory of Vietnam. Thanks to the opening of several large industries, the state recorded a GDP growth of 7% in 2018.
Favorable conditions in Vietnam and for real estate investments. The cost of such property increases from year to year. Of course, such sharks as London or Singapore are still far away, but with such rates of economic growth and interest from investors, the difference is leveled out quite quickly. Interest in real estate in Vietnam is fueled by the instability of the market for residential and commercial buildings in the United States, Britain, and Australia.
Experts note that the peak of the increase in real estate prices in Vietnam has already been passed. The cost per square meter has grown continuously since June 2017. Now the market has a slight lull. Nevertheless, analysts believe that in the long term, such an investment is a good solution.
For 2018, the cost of m2 in the city of Saigon increased by 17% and now amounts to 5520 dollars. Experts of the CBRE Group analytical company note that in 2019 there will also be an increase in the price of a square meter of luxury housing. Approximately it will rise in price by 10%. However, real estate from the budget price category practically did not change in price. The rise in price for 2018 was only 1%.
An important factor in favor of investment in housing in Vietnam is the increase in incomes of the population, the rapid formation of the middle class in the country and the increase in the number of millionaires. In particular, the number of citizens of the state, whose wealth exceeds $ 30 million, from 2006 to 2016 has tripled. These are record levels that even China and India cannot compete with. As it is known, if money appears in the population, it immediately begins to buy real estate.
