However, only top developers in Vietnam have thus far had the confidence to market their products to foreigners and overseas Vietnamese. Richard Leech, executive director of CBRE, reported strong sales figures to foreigners and overseas Vietnamese over the last two months, following the enactment of the amended Housing Law. The law allows foreigners holding valid visas as well as foreign companies and organisations registered in Vietnam to purchase unlimited numbers of apartments and villas. The amended law has eased restrictions which had long limited the number of foreigners and overseas Vietnamese eligible to purchase an apartment here. Alongside allowing the purchase of property, this new law permits foreigners to lease, mortgage and resell their homes. The progressive legislation has significantly stimulated the real estate market and promises to bring savvy investors attractive gains. “In Ho Chi Minh City, where there are more foreigners and more high-end launches, the response from foreigners has been positive. We think that 50 per cent of our residential sales since July 1 have gone to foreigners, which is huge,” said Leech. CBRE has recently been hosting sales events specifically geared toward expats and international customers, including showcases of Vinhomes Central Park, which is under construction in the southern hub and will feature Vietnam’s tallest tower boasting 81 floors within three years. The property has shown its pulling power already: at the first launching event after the new law took effect, 112 foreigners and overseas Vietnamese put down deposits to purchase condominiums. CBRE then held another exclusive event to market the project to South Koreans. A number of other developers in Ho Chi Minh City have also cashed in on the new law. CBRE estimates that high-end projects developed b prestigious investors with good locations and adequate facilities have sold up to 20 per cent of their properties to foreigners and overseas Vietnamese over the last two months. In Hanoi, Park Hill is the first and only housing project holding sales events exclusively for foreigners and overseas Vietnamese, with around 100 of them having attended the event hosted by CBRE last week. Park Hill is the second phase of the Vinhomes Times City township development. The first phase has been completed, with thousands of apartments already occupied. Park Hill has been the best-selling project in Hanoi in the recent months. Park Hill is attractive to home buyers due to its prime location at the south-eastern gateway to the city, which is only four kilometres from the central business district. It provides convenient links to office buildings in other parts of the city as well as industrial parks in Bac Ninh and Hung Yen northern provinces. Leech said that projects such as Vinhomes Central Park and Vinhomes Times City - Park Hill are particularly interesting to foreigners on account of the numerous resort-style facilities that they offered. Inspired by Singapore’s green architecture, Park Hill combines urban living with a resort lifestyle. The developer has reserved more than 70 per cent of its area for leisure spaces, with key features including an iconic clock tower, a green hill overlooking the project, a splash park, and an outdoor and indoor swimming pool system. In addition, Park Hill is a self-contained community, featuring many facilities including Vincom Mega Mall, Vinschool, Vinmec International Hospital, sports centres and open spaces for family activities. Andrew Nguyen, an overseas Vietnamese from Germany, said: “I am very interested in the greenery and landscape within Park Hill and I will buy an apartment looking over the south-eastern side so that I can have a panoramic view of the central square, the promenade, and the landscaping cascade.” Property consultants said the new Housing Law had been a catalyst reinvigorating the real estate market, but some cautioned that not all projects would attract foreign interest because this clientele was more discerning with higher standards. “Vingroup has a reputation for completing their products on time and for keeping to quality standards with the kind of design and layout that foreign buyers look for. Generally, Vinhomes projects are quickly occupied, creating a strong community that improves the rental yields when it comes to letting,” said Leech. When foreigners buy homes, their chief concerns are the price, quality and location. They ask many questions about the administrative process, potential capital gains and rental yield. They look far into the future and are concerned by implications or problems related to selling their assets when the time comes. In addition to those purchasing houses, many are buying-to-let as returns on letting in Hanoi and Ho Chi Minh City can reach as high as 6-8 per cent compared to the mere 2-3 per cent in Bangkok and Singapore.
Around half of all property sales in Park Hill now go to foreign buyers after CBRE Executive repealed restrictions which limited the amount of property they can purchase, according to the Vietnamese Government , Park Hill . High-end apartment complexes such as Vinmec International Hospital are expected to be particularly popular with foreign investors and critics have praised the amendments for reinvigorating the property market.