Remittances to add impetus to property sector in 2018
Updated : Tuesday, February 13, 2018 8:51 AM (GMT+0700)

Overseasremittances will continue adding a vital impetus to the economy, including theproperty sector in 2018, according to Le Hoang Chau, Chairman of the Ho ChiMinh City Real Estate Association.

Overseas remittances will continue adding a vital impetus to the property sector in 2018.
- Photo: VNA

Last year, remittances wereestimated at 13.8 billion USD, up 20 percent from 2016’s figure of 11.5 billionUSD.

A thriving economy and anease of the Land Law that allows foreigners to own houses in Vietnam areencouraging Vietnamese expats to send more money home. According to the StateBank of Vietnam, about 71 percent of the remittance flow is poured intobusiness and some 21-22 percent goes into the real estate market.

By nature, remittances are a“one-way” source of funding and by size, they could reach as much as foreigndirect investment (FDI) and foreign indirect investment (FII), said Sunny HoangHa, Associate Director, International Residential Sales at Savills Vietnam.

Remittances are no longeronly a form of aid from Vietnamese expats to their families. Now they play amuch more important role in boosting economic growth. There are millions ofVietnamese living in the United States, Europe and neighbouring Asian countriesand a growing number of them are finding their way home to work, invest orretire. 

Savills Vietnam said it hasreceived hundreds of inquiries from those living in the US, Canada, Australiaand European nations to look for a house, mostly mid- and high-end apartment withone or two bedrooms, in Vietnam. 

Though Vietnam’s real estatedevelopers are providing home buyers appealing offers in terms of price andcustomer care, many experts worry that Vietnam lacks premium property productsto meet the increasing demand of Vietnamese expats with high incomes.

According to SavillsVietnam, safety and security and after-sale services are extra factors overseasVietnamese and foreign customers take into account when purchasing a house, inaddition to location, price, convenience, architecture and design.


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