Vietnam and Thailand Real Estate Market
In Southeast Asia, the most active real estate market is in Thailand and Vietnam: if the first is popular for many years, then the second is developing rapidly right now. Let’s try to understand their advantages and disadvantages.
First of all, it is important to understand that Thailand and Vietnam are two different countries. Many tourists mistakenly believe that they are not very different from each other. In fact, only the geographic location and climate that is similar in these countries, therefore, living, investing and doing business in their territory, both locals and foreigners, have very different ways.
Economics and mores
Vietnam is a more puritanical country of traditional views, Thailand in this sense is more diverse, therefore, for example, Vietnam may be the most suitable for a family with a child, where you will not notice strong external manifestations in the diversity of morals on the street. But at the same time, interest in both countries from our compatriots remains high in any case.
Much earlier than Vietnam, buyers turned their eyes to Thailand, especially those who wanted to invest in hard currency – the Thai baht has long been pegged to the US dollar. Due to the growth of the Thai economy, the baht continues to strengthen, as can be seen by looking at exchange rates in recent years. In addition, professional investors appreciated the high interest rates on rental returns, the ease of financial transactions and the transparency of the market in Thailand. But not only in it, but also in Vietnam, now you can get guaranteed 8% per annum and more from renting your home. Both countries are a paradise for investors, since a large number of new buildings are being built on their territory.
A significant drawback of Vietnam for a foreign buyer is the legislation, according to which the state is a full and sole owner of the land, that is, you can only get the right to use. But we also recall that Vietnam opened its real estate market to foreigners only four years ago, maybe there will be some other changes in local legislation. But thanks to the recent opening of the local market for foreigners, there are many free territories. At present, real estate is being built in Vietnam in large numbers along the sea line and it is expected that such high growth rates of the local market will continue over the next five years. This is especially true for the resort area of Vietnam and its main center – Nha Trang. The undoubted advantage of this city is its geographical location. The fact is that there are mountains on both sides of it, so the city cannot grow along the coastline endlessly. Consequently, the value of real estate on the first line will only grow with the development of both Nha Trang and Vietnam as a whole.
Also an undoubted advantage of Nha Trang is the very fact that the resort has begun to develop relatively recently. – Almost the entire tourism infrastructure here is quite primitive. However, this is enough to attract several million tourists a year. The plus is that in Nha Trang at the moment there are a huge number of unoccupied niches for business. Unlike the famous resorts of Thailand, there is no such crazy competition. And the procedure for starting a business for foreigners is quite simple and inexpensive. Active growth in Vietnam was reflected in the growth of real estate prices – the cost of rental housing in the resort area is growing every year. Particularly in demand at the moment is real estate such as apartments and condominiums, the demand for which exceeds the supply on the market.
Calm or active lifestyle
But in Vietnam, the owner can own the acquired property for no more than 50 years, while in Thailand it can be acquired in private ownership. Thailand is very developed from a tourist point of view, so housing for every taste in any city is represented in large numbers. Any resort is built up with condotels, villas. Many beautiful European-style apartments and houses near the sea.
Thailand has on its territory excellent roads, almost every corner there are convenience stores, street food, shopping malls, entertainment complexes, bars, clubs. Vietnam is completely different in this regard. Finding a working store after 23:00 is very problematic – the Vietnamese go to bed together, and the streets are empty. Both options have a large number of fans among foreign property buyers.
As of the beginning of 2019, Vietnamese Nha Trang has virtually no premium property. And the starting price for a two-room apartment with sea views is 53,000-55,000 dollars. If we talk about more prestigious objects, then in the city there are several condo projects worth 150,000-300,000 dollars.