As Vietnam’s Economy Booms, More Luxury Buyers Emerge
The Vietnam economic boom is resulting in the emergence of local luxury buyers.
Over the past decade, Ho Chi Minh City’s skyline has been redefined by increasingly flashy towers of glass and steel, bold symbols of the country’s economic advancement and growing luxury property market. While foreign investment in the Vietnamese city has played a significant role in transforming the fast modernizing metropolis, so too have affluent Vietnamese buyers, whose personal wealth has increased in step with their nation’s financial growth.
“Across Vietnam, and particularly in Ho Chi Minh City, high-end real estate has spurred a wave of local and overseas interest and investment,” said Dung Duong, senior director, national head of professional services at CBRE Vietnam.
The luxury property market first took hold in the country’s biggest and busiest city before spreading to the capital, Hanoi, and elsewhere. Now, interest in high-end real estate is expanding beyond Vietnam’s borders as an increasing number of individuals find themselves with the means to invest internationally.
Since opening up to foreign investment and joining the World Trade Organization, the Vietnam economic boom is enjoying an assurgent trajectory. Last year, Bloomberg reported that the Southeast Asian nation, once one of the poorest countries in the world, recorded 7.1% economic growth, making it one of the best performers globally.
And the forecast remains positive.
According to the recent Economic Insight: South East Asia report, compiled by the Institute of Chartered Accountants in England and Wales, the Communist nation’s economy is expected to grow 6.7% this year, the fastest rate in Southeast Asia.
The country’s emergence as a global manufacturing and export powerhouse has also seen personal wealth explode. According to The Wealth Report 2019, published by British real estate consultancy Knight Frank, the number of millionaires in Vietnam is expected to grow from 12,327 last year to 15,776 by 2023, a healthy increase of 28%.
As such, affluent Vietnamese are investing beyond the country’s borders, although, according to Troy Griffiths, deputy managing director at Savills Vietnam, “due to outward currency restrictions, it’s done a little more quietly than other countries.”
That doesn’t mean it isn’t done, though.
“There are more and more Vietnamese investing in overseas property,” Ms. Duong said. “Ten years ago, only those who had relatives would buy properties overseas, so that they could live close to their parents or siblings. But these days, there is an increasing trend of wealthy parents sending their children to study internationally, and these parents are also investing in overseas property for their kids.”
Source: Mansion Global