Foreign Interest in Vietnam's Real Estate Market on the Rise

Oliver Bennett, a 39-year-old Briton who has lived in Ho Chi Minh City for 15 years, recently decided to explore the real estate market after marrying a Vietnamese woman. Initially, he believed that foreigners could not own property in Vietnam. However, he discovered that foreign ownership is allowed, albeit with certain restrictions.

Bennett and his wife began their search in December 2023, looking at apartments in the Thao Dien and An Phu neighborhoods with a budget of VND5 billion (USD$197,430). Despite their efforts, they either found properties that did not meet their preferences or exceeded their budget. By early 2024, they found a suitable apartment, but their financial situation did not allow them to proceed with the purchase.

When they revisited the apartment three months later, it was still on the market, but the price had risen by 20% to VND6 billion. Eventually, they found a similarly priced apartment on Mai Chi Tho Street that met their needs, offering convenient access to central districts, his workplace, and essential services.

Foreign buyers like Bennett have been increasingly interested in Vietnam's real estate market since the country eased ownership policies in 2015. They are allowed to buy 30% of units at new apartment projects. La Kim My Duyen, sales director at IQI Real Estate Group, notes that demand frequently outstrips supply in HCMC's Districts 1, 4, and 7, as well as Thu Duc City.

A study by CBRE Real Estate Group revealed a preference among foreigners for premium apartments, with over 3,000 high-end properties purchased in the city. Duyen attributes the rise in foreign house ownership to two main factors: high returns on investment and Vietnam's stable economy and rising social indicators.