Reported to have the second biggest potential for capital growth after China in both the residential and commercial property market in Asia, Vietnamese properties last year was piping hot and the total capital injected into the real estate market reached £3.37 billion.
Most of this cash came from foreign direct investment (FDI) and overseas remittance. More than eighty-five per cent of the FDI capital that entered Vietnam’s capital, Ho Chi Minh City, last year was pumped into real estate.
Thousands of local and foreign investors rushed to snap up apartments and prices in certain districts in Ho Chi Minh rose by more than 100 per cent, which was far more than industry experts had predicted.
Brett Ashton, Managing Director of Savills Vietnam, said, “The real estate price saw a two-fold increase over the last 12 months and three times over the last 18 months.”
As the market was on such an upward curve, experts predicted that it would continue growing this year, by as much as 30 per cent. PricewaterhouseCoopers even went so far as to list Ho Chi Minh City as one of the top ten most promising Asian markets.
