2nd June 2021
Vietnam's Expansion of Foreign Property Ownership
VIETNAM’S EXPANSION OF FOREIGN PROPERTY OWNERSHIP BRINGS GOLDEN INVESTMENT OPPORTUNITY FOR POSITIVE CAPITAL GAINS
A Luxury Resort-style Condominium in Ho Chi Minh City’s District 2 from HKD1.7 million
Vietnam’s new landmark Law on Residential Housing (LRH) in place last year removes a number of restrictions for foreign individuals to purchase property in the country, catching up with other markets in the region. This allows overseas nationals with valid proof of entry into Vietnam to buy properties in the country for a 50-year leasehold with renewal possibility upon expiration. With the housing ownership certificates obtained and approved by the authorities after residential projects completion and handover, which is also known as the pink books, buyers can enjoy their legal rights in accordance with the Land Law and the Law on Residential Housing, such as right to assign, right to lease, right to inherit and right for capital contribution.
The opening up of foreign property ownership is a key to attract foreign investment after a speculative property bubble burst in 2012. The revival of the property market, just like the economy of Vietnam, is maturing every day. The limited supply of quality residential projects in major cities has driven the Vietnam real estate market to become one of the most attractive markets for foreign investment in the region. For a price of a parking space in Hong Kong or Singapore, one can purchase a luxury residence in the main urban centre of Ho Chi Minh City.
Feliz en Vista is a joint venture development by Southeast Asia’s largest real estate company CapitaLand Limited and Vietnam’s Thien Duc Trading-Construction Co Ltd. Located on a prime site in the heart of District 2, Feliz en Vista provides a golden opportunity for overseas investors and buyers who are looking to own a top notch apartment at a reasonable price. Feliz en Vista is just five minutes away from retail and entertainment options like Vincom Megamall, Metro Hypermart and Lotte Cinema as well as amenities like riverside park and international schools such as ACG International School. Located 10 minutes away by car are Districts 1 and 7. The property also enjoys excellent connectivity via the Thu Thiem Tunnel, Thu Thiem Bridge, Saigon Bridge and Phu My Bridge. A lifestyle destination like no other, Feliz en Vista’s inspiration stems from the abstract notion of “The City Fabric” – a metaphorical city composed like a form of textile art, with interlacing threads of modernity and nature. This resplendent luxury development meets all the needs of an outgoing urbanite, whilst weaving them through the hustle and bustle of a modern city seamlessly.
Feliz en Vista has more than 100 facilities with unique and exceptional design for a mix of resort and active lifestyle, with the following “Star Facilities”: 5-star resort-style swimming pools (Saltwater Swimming Pool, Hot Spring Jacuzzi), Adventure Water Slide, Outdoor Movie Theatre, Treetop Adventure Walk Bridge, Grand Lobby for each tower. The first project of CapitaLand Vietnam to be awarded the prestigious Green Mark Gold certification by the Building and Construction Authority of Singapore, Feliz en Vista features semi-detached apartments with at least two non-shared walls that attracts natural wind and light. For this project, CapitaLand Vietnam has applied good design practices and principles that include well-considered units and floor layouts to provide good natural ventilation, which is the process of supplying air to and removing air from an indoor space without using mechanical systems. The residential project offers units of one bedroom to four bedrooms, including sky duplexes. Average prices for two-bedroom units start from HKD1,700,000 and HKD1,500 psf. Feliz en Vista is expected to be completed and handed over to homebuyers by end 2019.
Mr. Chen Lian Pang, CEO CapitaLand Vietnam, said: “Riding on the success of our mid to high-end residential projects in Vietnam such as The Vista, Mulberry Lane, Seasons Avenue and Vista Verde, we are pleased to now introduce Feliz en Vista, our latest project in District 2. During its domestic launch of Cruz Tower in October, Feliz en Vista received warm market response, selling over 80% of launched units – a strong endorsement of the project’s prime location, high quality finishing and premium resort-style facilities. Feliz en Vista marks a significant milestone for CapitaLand as we have built a strong brand reputation based on our 20-year track record in Vietnam and our portfolio of over 9,000 quality homes across nine residential projects in Ho Chi Minh City and Hanoi. We believe in the long term prospects of the Vietnam real estate market and are confident that our residential developments will continue to attract homebuyers and investors seeking quality, well-designed and well-located homes with good potential for appreciation in value.”
The developer, CapitaLand, is a listed company in Singapore. Its largest shareholder, Temasek Holdings Private Limited, is an investment arm of the Government of Singapore. As at June 2016, CapitaLand’s total asset size in Vietnam is S$748 million, making it the Group’s third largest market in Southeast Asia, after Singapore and Malaysia.
Infrastructure development in Ho Chi Minh City will contribute to the upside in Ho Chi Minh City’s property market. The metro system under construction in Ho Chi Minh City is believed to drive up the land prices and set off a property boom with the prospect of a convenient transportation system. Six metro lines have been planned and two of which, Metro Line No. 1 and Metro Line No. 2 are expected to be in service in 2020, connecting around 160,000 passengers daily. Areas around the transit stations, such as the center of District 2, are seeing real estate development boom with an average growth of more than 30 percent in the last few years and outperforms other districts. Projects in the metro line areas are currently selling at a few percent extra, compared with the prices of those with similar facilities in other parts of the city. When the metro lines run in 2020, it is expected the gap would be widened by 10 to 20 percent. In terms of rental market, the rental growth prospects prospect is stronger than other countries in Asia which already have their door opened to foreign buyers for some considerable years.
Mr. Kingston Lai, CEO of Asia Bankers Club states that “The opening up of Vietnam housing market is certainly a good news for overseas investors. A lot of foreigner investors have been waiting for an opportunity to enter Ho Chi Minh City after the market crashed in 2012 and the property prices have since been quiet. The Law on Residential Housing (LRH) in place on 1 July 2015 allowing foreign buyers to own properties under their name has triggered a rebound of the housing market after some rocky years. We are confident this emerging housing market will become the new favourite property investment hotspot for overseas buyers.”
The Hong Kong launch of Feliz en Vista will take place on the 26 – 27 November 2016 in The Park Lane Hong Kong, 27/F, 310 Gloucester Road, Causeway Bay.
CapitaLand is one of Asia’s largest real estate companies. Headquartered and listed in Singapore, the company’s diversified real estate portfolio primarily includes integrated developments, shopping malls, serviced residences, offices and homes. The company also has one of the largest real estate fund management businesses with assets located in Asia. CapitaLand leverages its significant asset base, real estate domain knowledge, product design and development capabilities, active capital management strategies and extensive market network to develop real estate products and services.
CapitaLand Group’s current presence in Vietnam is in the six major cities – Ho Chi Minh City, Hanoi, Hai Phong, Da Nang, Binh Duong, and Nha Trang in the residential and serviced residences sectors. In the residential sector, CapitaLand has a portfolio of close to 9,100 quality homes across nine residential projects in Ho Chi Minh City and Hanoi. In the serviced residence sector, its wholly-owned serviced residence business unit. The Ascott Limited, has a portfolio of more than 4,000 apartment units in 19 properties across the six major cities, making it the largest international serviced residence owner-operator in the country.
About Asia Bankers Club
The Asia Bankers Club is an investment club for banking and finance professionals in Asia. With a vast member base, the Asia Bankers Club organizes events for its members and provides physical assets for investments, such as properties, fine wines, art, timepieces, and collectables. Our members are from top tier investment, private and consumer banks, asset management companies, private equity firms, hedge funds, and sovereign wealth funds primarily located in key financial centres.