Buying property in Vietnam
Acquiring property in Vietnam is a tricky, and even onerous, process. This is influenced by external factors, such as inflation of the Vietnamese dong and Vietnam’s socialist-oriented policy.
The Vietnamese real estate market has recently faced economic difficulties, and it is said to be quite unstable. Due to economic difficulties, apartment prices plunged, on an average of 30 to 40 percent. As for houses, this phenomenon reached a six percent drop in prices. In Hanoi, there is an average of 40,000 unsold houses, and 20,000 in Ho Chi Minh City.
Because of this, there is an emerging demand in the Vietnamese real estate market, especially amongst expatriates looking for new opportunities. For expats planning to stay in Vietnam for a long period of time, it may be, in several cases, more profitable to buy property in Vietnam rather than rent.
The average price per square meter in a city center in Vietnam is reaching $2,450 USD. Out of the city center, the average price per square meter is about $1,000 USD.
The foreigner’s buying power, as for properties in Vietnam, does not have geographical limits. Expatriates can buy a house wherever they are willing.
However, it is interesting to notice that areas generally most demanded by expats are the main cities, such as Hanoi or Ho Chi Minh City, which has a population of more than eight million people. It appears less common to move to the Vietnamese countryside, where the average standard of living may be quite limited. In 2013, 30.2 percent of the population is expected to live in urban areas. Also, southern Vietnam often suffers from flooding, and it might not be a good area to move to.