Real estate is poised to welcome a large influx of capital from overseas Vietnamese.

With more relaxed regulations on home ownership for overseas Vietnamese, the estimated billions of USD in remittances each year are expected to boost the real estate market in the coming period.

Anticipating billions of USD in investment.

Recently, Danh Khoi Group announced the signing of a strategic cooperation agreement with Knightsbridge Partners - a real estate distributor in the international market, with the expectation of offering products from the Astral City high-end commercial and apartment complex project to foreign investors.

A representative of the Group stated that the signing of the strategic cooperation agreement with Knightsbridge Partners aims to boost product distribution and project development activities in international markets, bringing products closer to a larger customer base.

Previously, the real estate market also witnessed a series of collaborations between Vietnamese real estate developers and international distributors, with the aim of expanding their customer base to include overseas Vietnamese and foreign investors, especially in the context of the Land Law, Real Estate Business Law, and Housing Law expected to take effect on August 1st, creating more favorable conditions for overseas Vietnamese to invest in and buy houses in Vietnam.

“After collaborating with Vietnamese people abroad, I’ve noticed that most of them possess a certain amount of assets and are considering investing back in Vietnam, and some may even consider returning to live in their homeland,” said Troy Griffiths, Deputy Managing Director of Savills Vietnam.

In fact, regulations already allow overseas Vietnamese to buy houses in Vietnam. However, the complicated procedures and paperwork discourage them, so many overseas Vietnamese choose to have relatives register the property in their name when buying real estate in the country. This also leads to many disputes and lawsuits when problems or unforeseen events occur within the family.

According to Troy Griffiths, the new legal framework will address this issue, with clear and open regulations, making it easier for overseas Vietnamese to invest and own property in Vietnam. Remittances will then flow into the real estate market.

The Vietnam Association of Real Estate Brokers (VARS) believes that the reform of the Land Law, allowing overseas Vietnamese to be granted land use right certificates, is in line with international trends and is positive. It is estimated that remittances to Vietnam will increase, providing support for the real estate market in the coming period, especially given the capital shortage faced by many real estate businesses.

"Currently, the market is starting to see a large number of new customers who are overseas Vietnamese. The volume of transactions from overseas Vietnamese is also many times higher than in the same period of previous years," VARS reported.

Understanding the investment preferences of overseas Vietnamese.

According to experts, in the long term, remittances will be a strong source of demand driving the real estate market's development. This capital flow will be directed towards apartment products in central and suburban areas, which can be exploited for rental purposes.

In addition, the high-end villa segment in major cities and tourism and resort real estate products are also preferred segments, suitable for the affordability of overseas Vietnamese.

Mr. Trinh Hoai Duc, Chairman of the Board of Directors of RealPlus Joint Stock Company, said that in the residential real estate market, the mid-range and high-end segments in the central areas of major cities always attract significant interest and investment from overseas Vietnamese and foreign investors. A prime example is apartment projects in the Thu Thiem and Thao Dien areas, where 20-30% of the units are sold to foreign buyers.

Mr. Duc commented that the new regulations not only make it more convenient for foreigners to buy houses in Vietnam, but more broadly, the market is expected to attract more investment capital from foreign businesses and investment funds to participate in residential real estate projects, contributing to the vibrancy of product supply, as well as creating more internationalized types of real estate.

Therefore, to attract this demand, VARS suggests that businesses need to continue researching and developing real estate projects that meet high standards in design, construction quality, and amenities, serving both the residential and investment needs of overseas Vietnamese. They should also utilize diverse media channels to promote their projects.

In addition, we assist overseas Vietnamese with legal procedures, taxes, and issues related to buying, selling, and leasing real estate. We provide after-sales services such as property management, maintenance, and repairs, helping overseas Vietnamese feel secure and satisfied.

Source: https://baodautu.vn/batdongsan/bat-dong-san-chuan-bi-don-dong-von-lon-tu-viet-kieu-d217955.html