Vietnam’s real estate market, despite its long-lasting struggle, is finally gaining momentum with stable prices on the rise, Savills Vietnam Managing Director Neil MacGregor declared on May 21.

He claimed that in the next five years there will be no repeat of the property bubbles that occurred in 2008 and 2010.

Vietnam’s real estate market is expected to boom when the amended Housing Law, which allows foreign property ownership for the first time, takes effect on July 1.

Under the Law, foreigners will be entitled to own up to 30 percent of the apartments in a building, or 250 villas/townhouses in a project. Housing ownership certificates will be valid for 50 years.

Foreign investors, especially from Singapore – the leading FDI investor in Ho Chi Minh City – are raring to grab a share of the pie, he revealed.

The growing global economy, expanding middle class and the diversity of supply and demand will also contribute to the domestic success during the next five-year period, Savills believes.

They noted that Ho Chi Minh City, with its urban railway project; central Da Nang city, an emerging tourism hub; and northern Hai Phong province, will consolidate their positions as key real estate markets.

A recent report from Savills Vietnam showed that Vietnam has enjoyed rapid economic growth over the last 20 years. The Southeast Asian nation has recorded a total registered overseas capital of 70 billion USD and ranked among the world’s top ten countries for the volume of remittances.

In 2014 alone, the overall remittances sent to Vietnam were worth 12.5 billion USD, up to 20 percent of which belonged to the property sector.

Local government monetary policies, including an interest rate reduction to 6.5 percent per year, have stimulated the economy, particularly among retailers, with new engagement from international giants like McDonalds and Starbucks.

Meanwhile, the office leasing market has been on the rise with increasing domestic demand from finance, insurance and real estate companies.

The residential market has seen higher demand for condominiums as the younger generation is following an independent lifestyle of living apart from their parents.-VNA