HO CHI MINH CITY (Bernama-VNA): The policy of expanding foreign ownership quotas for eligible projects to sell to foreigners is seen as an important step to help the market attract international capital, while positioning Ho Chi Minh (HCM) City as an integrated real estate hub in South-East Asia.
The city recently announced an additional 48 projects eligible for sale to foreign individuals and organisations, bringing the total to 65. The move is regarded as significant in attracting international capital and creating additional demand in the market.
According to Nguyen Khanh Duy, Director of Residential Sales at Savills Ho Chi Minh City, the ownership cap of 30 per cent of apartments in a building or 250 landed houses in a ward will help the market absorb foreign capital without causing excessive price fluctuations. This is an important boost to liquidity.
Savills Vietnam reports that HCM City has faced a housing supply shortage for the past five years.
However, it said in the long term, positive changes and improvements, from the implementation of new laws and policies to the streamlining of legal approval procedures, are expected to create growth prospects for the residential real estate market in HCM City.
Foreign buyers typically buy mid- to high-end apartments of moderate size, located in central areas or near metro lines, from international developers.
The typical transaction value ranges from US$500,000 to US$1 million per unit, with most investors coming from Singapore, Hong Kong (China), the Republic of Korea, Taiwan (China), and the overseas Vietnamese community.
A controlled opening policy will support primary market prices and raise service standards. Developers with projects on the list approved for foreign sales will have a significant advantage in accessing international distribution channels, Duy noted.
In the long term, greater transparency in project listings, administrative reform, and synchronised infrastructure investment will help position the city as a real estate hub in South-East Asia.
The city has the opportunity not only to attract FDI into real estate, but also to expand into finance, asset management, and associated services. - Bernama-VNA
