Asia investors looking for new opportunities should set their sights on Vietnam, a promising, exciting country. The price of real estate has been climbing at a rapid pace as a reaction to two key stimulants; the housing downturn of 2009 to 2013 created a situation from which the country is now recovering, and the Housing Law and the Law on Real Estate Business have allowed foreigners and Vietnamese expats to legally own, transfer and sell real properties.
For investors looking forreal estate in a five-star hotel, Vietnam has many options to choose from. One such investment opportunity is with Amanoi Luxury Resort, located near the Vinh Hy Bay in Ninh Thuan Province along the southeastern coast. This high-end hotel offers villas to the savvy investor who is also interested in an exceptionally peaceful setting. Nestled within the incredible coastline of Nui Chua National Park with spectacular views of the Vinh Hy Bay, each villa offers much of what the hotel experience provides, but with the added benefit of being an investment.
Villa owners have access to the private beach, the spa, and the other incredible facilities offered by the resort.
Other types of investments are also flourishing in the newly liberalized real estate investment environment. During the third quarter of 2016, the total sales of all homes and apartments expanded by almost 50 percent above the year’s second quarter. The year to year growth came to 193 percent for the same quarter the previous year. About 71 percent of the transactions contributing to this boom were for townhouses.
Considering a real estate investment in Asia? Taking a good look at the Vietnam option should be at the top of the list.
Asian real estate investors are venturing beyond regional markets to OECD countries and other areas in the West, according to a recent study by Colliers International.
Outbound real estate investment from Asia has climbed from $1 billion in the early 2000’s to more than $30 billion in 2013. This is a result of a surge in global liquidity, as well as several other “pull” and “push” factors, according to CEO, Asia at Colliers International Piers Brunner.
Pull factors include the higher yields available in foreign markets, as well as strong economic growth potential and first world country real estate environments. Meanwhile, governments in Mainland China, Hong Kong and Singapore are pushing investors in an effort to slow local real estate markets by loosening overseas investment restrictions.
According to John Marasco, Colliers International’s Managing Director of Capital Markets and Investment Services in Australia, the Chinese investors are contributing greatly to the Australian real estate market.
“Chinese buyers alone are currently spending around $5.9 billion a year on Australian property (both residential and commercial),” he said. “The strong performance of Australia’s property markets suggest this demand will continue to grow across a range of assets.”
Director of Capital Markets and Investment Services, Asia, Terence Tang added: “We believe the emerging trend will see more outbound investors taking on additional risks in non-traditional property sectors, such as hotels, and to commit to value-adding schemes, including conversion and development opportunities, in the secondary locations of gateway cities, where prices are more attractive than in traditional core locations.”