Overseas remittances will continue adding a vital impetus to the property sector in 2018. (Photo: VNA) HCM City (VNA) – Overseas remittances willcontinue adding a vital impetus to the economy, including the property sectorin 2018, according to Le Hoang Chau, Chairman of the Ho Chi Minh City RealEstate Association.
Last year, remittances were estimated at 13.8 billionUSD, up 20 percent from 2016’s figure of 11.5 billion USD.
A thriving economy and an ease of the Land Law thatallows foreigners to own houses in Vietnam are encouraging Vietnamese expats tosend more money home. According to the State Bank of Vietnam, about 71 percentof the remittance flow is poured into business and some 21-22 percent goes intothe real estate market.
By nature, remittances are a “one-way” source of fundingand by size, they could reach as much as foreign direct investment (FDI) andforeign indirect investment (FII), said Sunny Hoang Ha, Associate Director,International Residential Sales at Savills Vietnam.
Remittances are no longer only a form of aid fromVietnamese expats to their families. Now they play a much more important rolein boosting economic growth. There are millions of Vietnamese living in theUnited States, Europe and neighbouring Asian countries and a growing number of themare finding their way home to work, invest or retire.
Savills Vietnam said it has received hundreds ofinquiries from those living in the US, Canada, Australia and European nationsto look for a house, mostly mid- and high-end apartment with one or twobedrooms, in Vietnam.
Though Vietnam’s real estate developers are providinghome buyers appealing offers in terms of price and customer care, many expertsworry that Vietnam lacks premium property products to meet the increasingdemand of Vietnamese expats with high incomes.
According to Savills Vietnam, safety and security andafter-sale services are extra factors overseas Vietnamese and foreign customerstake into account when purchasing a house, in addition to location, price,convenience, architecture and design.-VNA
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