Co-created with Homebase, this article is part of their Real Estate 101 series. Homebase is a prominent proptech company based in Vietnam that offers foreigners a more flexible alternative to mortgages. You can visit homebase.com.vn for more information.
What property types are the most popular in Vietnam? Tube houses arguably rank first, followed by a diversity of housing styles in the burgeoning real estate market.
In this article, let’s take a deep dive into the most common property types in Vietnam, including their features and prices. For investors who are looking for a potential piece, this is a must-read. Let’s discover six kinds of properties that we’ve done thorough research on!
Apartments
Apartments are houses with individual dwelling units that often have 20 to 50 stories depending on the location and construction quotas. These are the most popular in larger cities such as HCM City. Both international and local real estate developers can build these units, which make their prices range from affordable to expensive. For example, a two-bedroom apartment in downtown Ho Chi Minh City costs roughly $1,500 USD per month on average.
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Vinhomes Golden River apartment complex in District 1, Ho Chi Minh City. Photo by Shutterstock/Evan_Unit01.Because almost all apartment buildings have reasonably strong infrastructure, an apartment’s worth will be decided based on how comfortable and well-equipped it is. Some of the features and amenities that may be available include:
- Cafes
- Playgrounds for children
- Swimming pools
- Sports grounds
- Small ponds
- Parking in the basement
Some of the most luxurious housing complexes include schools, banks, and even shopping malls, putting convenience at the residents’ fingertips.
Apartments also come with several sorts. So, what exactly is a high-end apartment? Where does it differ from mid-range and low-cost apartments? Why are people prepared to pay so much for them? Let’s answer these questions by the context below:
Since 2015, the Vietnamese government has permitted foreigners to purchase and rent property in Vietnam. Foreigners often have fewer than 30% of the units available in apartment buildings, and their prices are typically 5-8% more than the prices of apartments accessible to locals.
However, whether you want to buy an apartment with a foreigner or a local quota, Homebase is always here to assist you access all sorts of properties.
Villas
Villas are bigger independent residences in gated communities that have gardens, a yard, and many storeys. Built by an individual or a corporate owner, they virtually look the same.
Different villas are divided by land, or more precisely, by their yards. Like apartments, villas will include community centers and amenities available to residents, such as pools, gyms, and meeting rooms to improve their living standards.
LakeView City in HCM City is an example of this (see below). These villas are developed on a 30 acre metropolitan area, are adjacent to schools of all levels, have retail centers, healthcare, playing grounds, sports facilities, meeting spaces, a large park and pool, strong security, and are rather luxurious.
For sale, these villas start at 7 billion VND/300,000 USD. Their average price per square metre is roughly $2,700 USD.
Why Villas?
Villa purchases are growing increasingly common, and there are a variety of reasons for this. Here’s a short rundown and explanation of each.
- Eco-environment – The Covid-19 epidemic has permanently changed the global landscape. As a result, the affluent and super-rich prefer a safe area to live with full facilities at their fingertips. Eco-urban communities on the outskirts are on the rise, notably with their short distance from the city center (about 1 hour of commuting).
- Privacy – Because the villas are isolated units, they provide the privacy that condominiums, apartments, and other similar structures cannot.
- A solid investment – Vietnam’s economy is expanding, and prices will rise in the next few years, particularly for this sort of property due to scarcity. The drawback is that liquidity will be delayed since not everyone will be able to purchase.
- Safety – Most villas are in gated communities with security, helping habitants feel safer.
- Convenience – Some luxury developments will have so many facilities that it will seem like a small city. It’s convenient to have everything you need within reach, as with the case of these villas.
- Luxurious lifestyle/exclusivity – Some people are only interested in the life they may lead in such an exclusive setting.
Officetels
An officetel is a hybrid of a hotel and an office, and they are a great option if you want to do business.
They are often placed in bigger housing complexes. You may live in a room and use it as an office at the same time, but a typical apartment can only be used for living.
Many of these projects can be found in Districts 2, 4, and 7 of HCM City. The Lexington Residence and The Sun Avenue are located in District 2. Millenium, City Gate, and Goldview are all located in District 4. Finally, Sunset City View is located in District 7. If you’re looking for an officetel, these would be great places to start off from.
These are quite useful for folks starting small enterprises or working remotely. One thing to keep in mind is that an officetel does not have a mortgage or a pink book.
Condotels
Condotel, or condo-hotel, is an abbreviation for condo and hotel, which are condominiums that function as hotels and are often available in metropolitan cities or resort locations.
Their owners might be real estate investors who purchase and resell property, more prosperous individuals who buy them while on vacation, or ordinary people who spend their spare money in these to make some extra money.
Because of their convenience, condotels have grown in popularity in coastal cities such as Nha Trang and Da Nang. However, the laws here are typically less stringent than those for regular flats (since condotels are relatively new buildings, they haven’t been detailed extensively in legal papers), which has resulted in disputes or disagreements with developers in the past.
The Ministry of Natural Resources and Environment published document 703 that allows pink books for property like this, as of February 2020. However, hotel developments of this type typically have a land use tenure of 50-70 years, hence pink books for condotels are only valid for this period. Another thing to keep in mind is that this pink book will not provide you permanent residency.
Below are the images of the VinPearl condotels, which offer several services, a big dining space, and modernly decorated rooms.
Land
In Vietnam, the term of a land lease is 50 years, with the option of extending it to 70 years in special circumstances.
Unlike in many other countries, you can possess land that isn’t in use. After signing a lease agreement for the land, you are not required to use it for any purpose and may just abandon it. You can construct, divide it into smaller portions, and so on with official authorization.
Land in Vietnam is classified into several sorts, but we’ll just cover the four most prevalent ones here: residential land, agricultural land, forest land, and industrial land.
Residential land is where people build homes and live, so it’s just typical land where you’d see houses or flats.
Agricultural land (see below) can be used for farming and agriculture, as the name implies, but you can also apply to the government to have it converted into residential property. More individuals are contemplating this choice since it is less expensive to convert agricultural property than to buy residential land alone, but the process is time-consuming. Keep in mind that not every agricultural property may be transformed, as well as unique restrictions.
Forest land is exactly what it sounds like: Land with woods that may be used as parks. These areas are often strongly protected by the government, so you can’t do anything with them, nor can you cut the trees or plants. So, if you want to build a house, forest land is not for you.
Industrial land is property purchased by businesses for the purpose of constructing factories, warehouses, and other structures. This land is just for this purpose; it is not for homes or for people to live on.
Landed Property
Landed property is a solitary house, similar to villas, with the exception that each house is unique and not necessarily built by the same developer.
If you spend time roaming around alleys in HCM City, you’ll quickly discover what they look like. Many landed houses have long, thin facades and are clustered together. In Vietnam, these are the most seen types of property.
Landed properties, on the other hand, come with land, and even if they don’t have amenities expressly for their group of inhabitants, there will be facilities nearby for usage.
Furthermore, landed properties might contain residential property combined with agricultural land, such as farms. Here are some instances of various landed properties.
Conclusion
Property purchase in Vietnam might be a difficult task given the variety of houses in the market, which is something Homebase can help you with.
Homebase offers a more flexible alternative to standard bank mortgages, allowing foreigners and Vietnamese nationals to buy property in Southeast Asia more easily. The company, backed by multibillion-dollar investors from throughout the world, will also assist you with every stage of the process, including appraisal, due investigation, and acquisition.
To learn more about Homebase, call +84 94 823 00 33 or visit homebase.com.vn today!
By Tuyen Ly
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Source: Vietnam Insider