There is a growing demand for urban property in Vietnam because of its strong economy and greater market transparency. Residential properties as well as hotel space have high demand because factories are bringing people into the cities. Services particularly tourism is seeing the biggest growth and now accounts for 44% of the economy.
Will Vietnam be the next China? The demographics are the same; it has a rapidly increasing middle class and an emerging Communist administration that is opening its doors to foreign investors. Some industries are relocating from China and this is resulting into Vietnam’s thriving economy. But Vietnam has a young population that is driving economic growth rapidly. When you travel around Vietnam, you will only see a few old people which puts the median age at 30. In China, the median age is 35. This means that bulk of Vietnam’s population is at the peak of productivity.
Ho Chi Minh City that used to be called Saigon is the second most popular market in Asia for residential property investments. Investors are focused on the small flats that have great appeal domestic buyers. Resorts are also mushrooming along Vietnam’s coast and usually include private villas in the development.
Most of the private villas face the sea or there is a swimming pool that can be shared by guests. For the price of $400,000 to $5 million, hotel developers are guaranteeing investors ROI of 6% to 10% annually. Vietnam has always been quite popular to backpackers but high end tourism is now being developed. Vietnam tourism hopes to attract visitors with thicker wallets and more money to spend. According to Knoema, Vietnam gains 13.9% of its economic output from tourism. Vietnam as a whole expects to continue with its tourism boom with 70% of the visitors spending time at the high end hotel rooms at the coast.
Many people would gladly stay at luxury pool villas in Hua Hin because they are near the beach. Hua Hin is one of the more popular tourist destinations in Thailand because of its seaside environment that is both relaxing and entertaining. You can sunbathe during the day and attend a beach party after dark.