China Also Fueling Vietnam Real Estate Market

Aside from Sydney, Vancouver and Palo Alto there is also Ho Chi Minh City.

The strongest capital flow to real estate sector is from China
The investor of an apartment project in District 2, HCM City, revealed that he sold 200 apartments within a short time, despite the fact that only the foundation of the building has been completed.

How could the investor sell so many apartments under the current economic climate, with the real estate market still hibernating with very few successful transactions? Who were the buyers of the apartments?

The answers to the questions could be found at a meeting between the investor and the clients. Of the first six clients, two were foreigners. One of the two said he was from Taiwan. He bought five apartments. The other, from Singapore, bought three.

One could see in the list of customers of a resort real estate project in Da Nang that prior to 2012, the buyers were mostly from Hanoi, the northern provinces and HCM City. However, things have changed notably in the last two years. The real estate developer realized sales of $12 million from early 2013 to the end of the first quarter of 2014, and most of the buyers were from China, Hong Kong, Singapore and Macau.

These are just a very small part of the huge capital that investors from China and the Chinese speaking community are bringing to Vietnam. Analysts are noting that something which no one imagined before is coming to pass: China is becoming the biggest funding source for the Vietnamese real estate market.

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