Vietnam’s real estate market opened in 2015 as restrictions were lifted on foreign ownership.
A decade or two back, you could barely find new highrise condominiums as few foreigners were living in the country and developers eyed opportunities elsewhere.
Regulations have become significantly more relaxed and you can invest in real estate if you’re allowed to enter the country. There’s no regulation on the number of condo units you can buy as well.
With that said, the buying process differs much from what many people are used to at home. In this article, I explain how it works when buying off-plan properties in Vietnam.
- What is an off-plan property?
- Buying Process for Off-Plan Property in Vietnam
- Payment in Instalments
- Receiving a Delegation Letter
- The Differences of Buying From Vietnamese and International Developers
- Opening a Bank Account
What is an off-plan property?
Off-plan and pre-construction properties are properties or pieces of land that are not yet developed or with any structures.
By selling units as construction commence, the developer can secure funding and proceed to the next stage of the development.
Buyers, on the other hand, can purchase units at lower prices as the value will increase as the construction commence and the surrounding areas develop.
Novice investors can even make great profits by procuring and selling units before construction has started.
Of course, there might be risks of investing in off-plan properties as well. The market might drop, the final result be different from your expectations, or the developer might not be able to finalize the project.
In such scenarios, other developers can take on and finalize the project, if they are willing to.
Buying Process for Off-Plan Property in Vietnam
Below I’ve included the step-by-step process that foreign buyers adhere to when booking and paying for an off-plan property in Vietnam. Continue reading Buying Off-Plan Property in Vietnam: A Foreign Buyer’s Guide