Today Vietnam can no longer be called a country where you can buy real estate cheaply. The range of prices is very large, but prices for resort real estate have already increased following the number of tourists arriving in Vietnam to relax. Apartments with an area of 100 sq. m in the center of Da Nang (a large city on the shores of the South China Sea) can be purchased for $ 190,000, a villa with an area of 276 sq. m, located 8 km from the city center, will cost $ 830,000. A villa with an area of 610 sq. m. m in the ancient seaside town of Hoi An offer for $ 1.75 million, and the house is 250 sq. m in the resort of Nha Trang can be found for $ 340,000. And if we talk about real estate prices in Hanoi and Ho Chi Minh, then, according to Andrey Ryabov, CEO of Calisto Corporation Ltd., the market here is even overheated. The most delicious pieces of Vietnam for foreign investment are located on the resort coast of the South China Sea. In these places, foreign investors are building hotels, villas, townhouses, sports and entertainment complexes. “The Vietnamese government regards the tourism industry as one of the strategic directions of economic development, therefore, it stimulates it in every possible way,” says Andrei Ryabov. - Real estate prices in these places are constantly growing, which increases the liquidity of investments. In addition, the progressive growth of the country's economy and political stability give investors confidence that they have made the right choice. " The most attractive resorts for real estate investment are such resorts as Da Nang, Mui Ne, Hoi An, Vung Tau and Nha Trang. Dmitry Andreev, director of the finance department of the MIRAX GROUP corporation, notes that Nha Trang began to develop as a tourist center recently, now the state actively supports this region and pays great attention to it. “Many experts call this place the most promising in terms of tourism development and tourism infrastructure,” he notes. "So, in early 2010, it is planned to open an international airport Cam Ranh in this area." Restrictions on Purchases The Vietnamese government restricts the rights of non-residents to purchase real estate in the country. “One of these restrictions, which applies to all segments of the real estate market, is that foreigners cannot own real estate and must buy it on a long-term lease basis. The maximum term for which an agreement can be concluded is 70 years, ”comments Patti Joslin Ndzana Etoga, Deputy Director of Marketing and Design at CB Richard Ellis Vietnam Co., Ltd. “However, the state is still gradually opening up the real estate market for foreign buyers,” continues Patti Joslin Ndzana Etoga. “It is not excluded that in the near future non-residents will be able to obtain the right of unconditional ownership, which will undoubtedly make the market much more attractive for investments.” Indeed, the Vietnamese government during the 2000s gradually opened up the country's economy in general and the real estate sector in particular to foreigners. The main thing for foreign investors was the decree adopted in May 2007, which allowed them to lease land for an unlimited period (at first, the contract is concluded for 50 or 70 years, then it can be extended indefinitely without additional payments). Since in Vietnam all land belongs to the state, this law has practically equalized the rights of Vietnamese citizens and non-residents with regard to land ownership. Since the beginning of this year, another important law came into force, thanks to which some categories of foreign citizens received the right to acquire apartments in their ownership - however, pledging, however, to resell or donate them in 50 years. Such transactions are allowed to private investors and owners of Vietnamese companies, foreigners who have special services to Vietnam or who have married Vietnamese citizens. According to Andrei Ryabov, "the restriction of property rights for foreign investors is compensated by the direct tutelage of the Vietnamese state over the investment policy and the desire to develop it in the direction of expanding the rights of non-residents." And although at the moment there are significant restrictions on the purchase of housing in the country, the expert is sure that the opportunities for foreign investors will become broader over time. Investments for the Patient For five years, the annual economic growth of the Socialist Republic of Vietnam was about 7%, the standard of living of the population was increasing, the national currency (the Vietnamese dong) felt confident against the dollar, and the land was constantly becoming more expensive. As a result, the Vietnamese economy was recognized as one of the fastest growing in Southeast Asia, and domestic demand for housing increased significantly. First of all, young Vietnamese are interested in buying real estate. Another circumstance fueled interest in purchasing houses. “The recent government decree allowing Vietnamese with foreign citizenship (Viet Kieu) to acquire real estate property has expanded the demand market by more than 3 million people. Demand is also increasing against the backdrop of limited supply, which allows us to speak about the prospects for market growth, ”explains Andrei Ryabov. The real estate market in Vietnam is still developing, but investors should not rely on quick returns on investments: there are not many opportunities for speculative transactions. “The Vietnamese market is really very interesting in terms of investments. But you cannot quickly enter the investment project or quickly leave it here, - says Patti Joslin Ndzana Etoga. - Vietnam is a developing country where there are more risks than in classical markets. Many of them are related to time: investors are hoping for a quick change, but in reality everything is happening very slowly. " Other experts, comparing the current situation in the real estate sector in Vietnam and other countries, believe that the fears of investors are not always justified. “The level of development of the country and the maturity of the market do not guarantee that investments will be successful, which was proved by the mortgage crisis in the USA and Great Britain,” believes Dmitry Andreev. - Of course, the youth of the market inspires concern for many investors, but they are insured against radical changes for the worse by the policy pursued by the Vietnamese government. Government regulation amid the desire to attract foreign investment makes the Vietnamese real estate market one of the most stable in Asia. " Such a role of the state, according to the expert, guarantees protection from unexpected crises, and there is no reason to believe that the state will begin to take property from private individuals. In today's situation, even state control of the real estate sector seems to be a kind of advantage for Vietnam. Investors can hope for certainty and stability - as much as possible in an emerging market. At the moment, it is protected from speculation and is largely focused on domestic demand. Government regulation discourages foreigners who could blow up the real estate market of resort cities on the shores of the South China Sea, but it allows making predictions about long-term investments. The most cautious investors do not expect a quick change in laws for foreigners, but optimists are confident that "gifts" from the government are still worth waiting for.
