According to experts, the policy enabling overseas Vietnamese and foreigners to buy houses in Vietnam is considered an important move to drive foreign capital flows to the property market.
At the time the amended Housing Law allowing overseas Vietnamese and foreigners to buy houses in Vietnam officially took effect last July, Prof. Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, said that this would strongly influence the high-end property market of Vietnam.
"Due to the latency impact of the policy, in 2016, the market will more clearly reflect the investment trend of foreign investors in the property market of Vietnam," Prof. Vo said.
Neil MacGregor, CEO of Savills Vietnam, said that foreign investors were "eyeing" the real estate market of Vietnam. He said Vietnam is now an attractive destination for investment flows in the real estate sector in the region, because while the neighboring countries like Indonesia and the Philippines are on the cusp of the real estate cycle, Vietnam is in the recovery period and has strong grounds for development in the near future.
For Condotel, real estate consultants said foreign investors were very excited because they were already accustomed with the Condotel investment model in their country.
"They have invested and are too proficient with the assessment of opportunities and seizing investment opportunities. They have been enjoying the profits brought by the Condotel. These experiences will help them a lot in investing in Vietnam," said Hoang Anh Tu, a real estate consultant.
However, as they are experienced, these investors will be very sure-fire in making decision. Only prestigious projects, which are managed by well-known groups and meet international standards, can persuade them.
Phu Quoc - a hotspot
According to statistics of Condotel transactions in the two years of 2014 - 2015 by CBRE, the growth rate in Phu Quoc surpassed the two other areas which have had a longer time of Condotel development - Da Nang and Nha Trang. This growth reflects CBRE’s assessment: Phu Quoc is one of the tourism markets with the best development potential at present.
With abundant land, the most beautiful and pristine beaches in Vietnam, warm climate throughout the year and almost never prone to storms, Phu Quoc is particularly suited to the development of hotels, resorts, and products related to resort tourism like casinos, medical tourism or recreation.
Many famous magazines, TV channels in the world ranked Phu Quoc in the list of 15 most potential tourist destinations in the world. The special natural conditions have turned Phu Quoc into a destination for real estate investment flows, particularly Condotel.
The Condotel Premier Residences Phu Quoc Emerald Bay that was recently launched for sale by the Sun Group is a typical example. After only two days open for sale in Ho Chi Minh City and Hanoi, more than 150 investors signed contracts to own resort apartments of this project.
This is one of the resort projects invested by the Sun Group that meet international standards in Vietnam, including: close to the sea in the large resort, the density of construction is only 30% of the total construction area, 70% of the remaining area is for trees and 5-star facilities, the rate of profit is committed at high level (up to 9% in nine years) and the vacation exchange program (timeshare) is up to 135 nights in nine years.
Opportunities for early comers
Ms Trang Nguyen, a Vietnamese-American who signed a contract to buy Condotel Premier Residences Phu Quoc Emerald Bay, said that in addition to the natural conditions, the Condotel projects in Phu Quoc also have prices that are much lower compared with the average in the region.
Specifically, the price of apartments in the projects of the Sun Group as the Premier Residences Phu Quoc Emeral Bay is only about $150,000, much lower than the price of comparable apartments in Sentosa of Singapore.
Trang Nguyen said one of the reasons that urged her to make the investment decision quickly is the investment principle "Who comes first will have more opportunities."
"In the US, for most transactions of Condotel, those who buy early will have higher profits. When a 4 to 5 star Condotel is completed and put into operation, some can resell at very high prices, even doubling the original price.
The price increases usually takes place within 18-24 months. Therefore, it is the golden time to invest in Phu Quoc," she stressed.