Vietnam's Property Market Poised for Growth in 2016
The Vietnamese property market is entering 2016 after a year of sustained economic recovery, driven by improvements in fundamentals and transparency.
Vietnam is offering some of the most exciting opportunities in the region, while other real estate markets are suffering.
Singapore is feeling the effects of the heavy-handed cooling measures, Indonesia and Malaysia have seen rapid currency depreciation, Thailand continues to grapple with internal issues and Myanmar is seeing significant supply coming into the market, putting downward pressure on rentals and pricing.
Meanwhile, Vietnam has come through an extended period of consolidation, and looks poised to lead the regional real estate markets over the next two to three years.
There are significant advantages for the country's real estate market as it emerges as an attractive destination for property investors. A principal benefit is the overall state of the economy compared with previous years, leading to increased confidence in the outlook for further growth.
A lot of the foreign investors' attention will be directed towards development of infrastructure throughout the country such as the new metro in the main cities or upgraded airports in tourist destinations, which will add medium and long-term value to various property sectors.
At a recent conference held in Singapore on South-east Asia's real estate markets, Vietnam was voted the most favoured real estate market in the region and is expected to perform best in 2016, ahead of Thailand, Indonesia and the Philippines.
The introduction of new residential policies allowing foreigners to own houses will help the Vietnamese property market to be perceived as more transparent and open to foreign investors, compared to the previous years. It will also benefit from acquiring a regional reputation as a safer destination for foreign capital.