Property Insight is considered the only valuable information source providing extensive knowledge from diversified angles for real estate investment.
Converging many favorable conditions with social, cultural, political and economic advantages, Vietnam has emerged as a thriving and fast-growing market in Southeast Asia and become one among the most-preferred property investment channels by both local and international investors.
Nevertheless, huge investment opportunities have been usually coming along with high risks, especially in a young and immature market where real estate investors/ home buyers in the country are indeed lacking such a formal, professional, and trustworthy information source with diverse viewpoints for their investment orientation that they could find all in the “Property Insight” program.
Ultimate guidelines from numerous top experts
The demand for investment in properties in Vietnam has increased significantly since 2015 when property ownership was first opened to international investors. The market has been receiving increasing interest from Asian investors taking advantage of the bargain prices in comparison to other Asian countries like Singapore or Thailand.
Though the local real estate sector is growing quite well, it still has implicit uncertainties with more projects now waiting for approval since newly established property firms soaring. Such a young and non-transparent industry with unsystematic and insufficient information along with the shortage of in-depth analysis from different angles has been posing a lot of challenges for customers in consideration before making an investment or purchasing decisions.
With the goal of moving the local market towards a transparent real estate business environment where investors/ home buyers would have enough information and research-based data on both micro and macro markets, the program was created and has gathered leading professionals and top industry insiders from many sectors to provide ultimate guidelines for accurate and long-term investment orientation.
About the investing, especially in real estate, there are two different points of view, according to Mr. Vo Huynh Tuan Kiet, Associate Director and Head of Housing Project Marketing, CBRE Vietnam. “Foreigners from developed countries would look at HCMC as a place that they can put money in. They appreciate the emerging stage of the market because they can see the potential of the city. The value of the investment will be increasing day by day, years by years, can be 20-30% or maybe double the original investment,” Mr. Kiet insisted in the “Property Insight” program – Episode 3 about “Livable city”.
On the other hand, local investors also appreciate this city’s developing status. Despite some delays and issues, HCMC still has room for investors to increase their investing. As long as the city still keeps renovating, infrastructure is still being developed, many residential areas are being planned, new buildings and commercial sites are rising up, there is always an opportunity for investment, he added.
Multi-dimensional views needed for sound investment orientation
Many experienced specialists from different episodes in the program have provided viewers with diversified angles from the property market outlook, potential investment locations, to real estate credit policies, or specific housing segments.
With the Government’s tightening policies on real estate credit, Vietnam’s property mortgage market has been especially concerned by investors and seen rapid development. “This has been driven by associated economic changes taking place which includes very high urbanization rate leading to a huge demand for apartments, especially in Hanoi, HCMC and other major areas”, Mr. Sanjay Chakrabarty, OCB’s Deputy CEO, Head of Retail Banking, explained in Episode 8 about “Mortgage”. “On the other hand, consumer credit has also expanded almost double within only several years and 50% of which has come from a mortgage. Home ownership is a good thing and it’s the first step to wealth creation.”
Under a property developer’s perspective, SonKim Land’s CEO Mr. Andy Han, also noted in Episode 8 that around 40-50% of its customers are foreigners so they anyway cannot get any kinds of loans in Vietnam. But the remaining are local people and only 10% on average are getting loans from banks. This rate is significantly lower compared to South Korea.
In fact, CBRE’s statistics show the buyers in the affordable and low-end segments tend to borrow more than buyers in the luxury and high-end segments because luxury and high-end buyers are mainly investors and they don’t need to borrow money.
Particularly in the shophouse segment, although some said this has been a difficult-to-sell channel, Mr. Andy saw a lot of owners who own more than one shophouse in many projects. “All the shophouses produce pretty decent rental yield, around 6%. I think this is a good investment for those who are looking to invest in different types of real estate assets. Again, it could be really easy for developers to sell or could be a headache depending on locations as well as how many customer objectives of the shophouse business,” he said in Episode 7 about “Shophouse”.
Mr. Andy Han and his sharing about shophouse investment
Comparing the value between a shophouse and a residential house, Ms. Chinh Tran, Leasing Manager of Retail Services at CBRE Vietnam, revealed the difference might be from 25-100% higher than the upper apartment levels. However, it depends on the location, and then the value of a shophouse doesn’t get evaluated from the beginning of the selling stage but is rather increased quickly and very high compared to apartment levels in the later period of building operation.
With leading experts and top industry insiders’ expertise together with their extensive and diverse experience in various sectors ranging from economics, culture to real estate consultancy, or project development, audiences could find very useful facts and figures as well as learn precious lessons from a demonstrated analysis in terms of property investment. The program is also becoming guidance for both local and international investors/ home buyers to be confident about their real estate investment decisions.
Featured image: Mr. Sanjay Chakrabarty and the panelist (Third from the left)