Buy an apartment in Vietnam: dreams VS reality

 16.07.2024

Three-bedroom apartment by the sea in Vietnam for 60 thousand USD - is it real?

We analyze what the cost of real estate in Vietnam is formed from and where the myths about apartments for 30 thousand USD come from. What real amount should be expected when buying an apartment by the sea?

General Analysis of the real estate market in Vietnam

Real estate in Vietnam

Residential and commercial real estate in Vietnam has risen in value in recent years but continues to be an attractive investment channel for both domestic and foreign investors. This is due to favorable factors such as political stability, a positive outlook for the economy, the growth of foreign investment capital, an increase in household incomes, and an increase in purchasing power, as well as the signing of many free trade agreements. As a result, the Vietnamese real estate market has a favorable development prospect.

Since 2019, there has been a noticeable increase in prices for apartments from developers in new projects. The price for such real estate from developers at the moment is from 2 000 USD per m2. For example, in one of the new projects under construction in Nha Trang, Aston Luxury Residence, the cost per 1m2 is about 4 200 USD only at the construction stage. 

What are the real reasons for such a rise in prices for real estate in Vietnam?

For example, in the province of Khanh Hoa, over the past few years, the price of land for construction has increased several times due to the fact that the corruption component in the distribution of land was excluded; increased cost of building materials and labor; government requirements for developers have risen - now, in order to obtain a building permit, they need to confirm that they have their own funds to complete construction, draw up more permits, which in turn affects sales and construction time.

Buying real estate in Vietnam

If a couple of years ago, developers could get land at a very low price, if they found a “special approach” to the authorities, now all this is under special control in Hanoi and developers are forced to pay the full cost of the land. Does this mean that you should not consider real estate in Vietnam as an object for profitable investment? Vice versa! The cost is growing every year, which means that buying an apartment in Nha Trang at the construction stage in a project such as Aston Luxury Residence, in a few years you can resell it very profitably.

Buying an apartment in Nha Trang below market value

Now a few words about apartments sold at a lower market value and for what reasons the price of real estate can look so attractive. Numerous clients come to us with a desire to purchase apartments in the residential complex Muong Thanh Oceanus. The story is almost the same: hello, my friends bought a three-room apartment in this complex for 60 thousand USD, and we really want it too, help! However, not many acquaintances share information about the other side of this, at first glance, an incredibly profitable deal. This project is just an example of when the land for construction was obtained by the developer using his connections in the government and now the further fate of this project remains unclear. 

 

Is it possible for foreigners to buy social housing in Vietnam

Let's also consider another type of request from a client for objects at a very low cost relative to the real market value of real estate in Vietnam (30-50 thousand USD).

Buying real estate in Vietnam for foreigners

We have encountered numerous situations when a client independently finds a property in Vietnam to buy at an acceptable price for him and then turns to our company to complete the transaction. I would like to note in advance that we very much welcome this type of cooperation. However, upon a detailed study of the object, we find out that this housing has social status, according to which only a Vietnamese citizen can purchase it while having certain social benefits from the state (poor, large families, families of military personnel, people with disabilities, etc). It is impossible for a foreigner to purchase such housing and we are simply unable to help the client on this request. But we began to understand where people get such prices, however, as indicated above. A transaction for the purchase of cheap social housing by a foreigner cannot be carried out by any real estate agency in Vietnam.

Friends, this article might seem quite sad (shattering fantasies and dreams is always a little sad), if our company did not offer you real alternatives for buying real estate in Vietnam.

On our website, you can find suitable properties at the current cost at the moment, which have been checked by our specialists for compliance with all documents from the developer. We are engaged in the selection of both residential real estate in Vietnam and commercial real estate. We have offers for you both for ready-made residential complexes that have already been put into operation and for objects at the construction stage.

Leadership TSC provides services of property search and support of real estate transactions in Vietnam, contact us now.