Vietnam's super-rich increase highest in the world

According to The Wealth Report by UK real estate consultancy Knight Frank, the number of ultra-high net worth individuals (UHNWI) in Vietnam has grown by 320%, the highest rate in the world from 2006 to 2016. This figure is more than 10 times higher than that of the US at only 30%. The growth rate of the super-rich group in Vietnam is higher than both India (up 290%) and China (up 281%). This index is expected to increase by about 170% from 2016 to 2020 and at the same time remains the fastest growth rate in the world during this period.

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The rapid increase in the number of super-rich has also led to an increase in real estate prices in Vietnam. According to Savills, the high-end segment has a high growth trend and long-term investment opportunities and the potential for capital appreciation because Vietnam has a good economic rebound. In other words, although the road to development like Hong Kong and Singapore is still very long ahead, the future of Vietnam becoming an "Asian tiger" is still within reach, when combined with a stable macro-economy, a growing middle class and especially maintaining affordable prices.

According to Savills, the price of a penthouse apartment in the center of Singapore is up to tens of millions of USD. In Hong Kong, to own a house facing the street with a view of the "roof" of The Peak, buyers have to spend up to 48 million USD. Meanwhile, the price of luxury apartments in the center of Ho Chi Minh City is on average about 5,500 - 6,500 USD/m2, equal to 25% of the average value of real estate in Taiwan and a small part in Hong Kong, where house prices are always high at all times.Additionally, there are things to note such as in Taiwan, property owners are subject to additional taxes and fees, while buyers in Vietnam only need to pay 10% value-added tax (VAT) and a one-time 2% maintenance fee.

Real estate prices in Vietnam are rising

With the strong economic growth in Vietnam in recent years, foreign investors from Hong Kong, Taiwan, China, etc. have finally decided to participate in the real estate market. The proof of this excitement is the shortage of foreign quota (maximum of only 30%) for projects with good locations and quality standards from reputable investors.

Vietnam has become an attractive investment destination with its tremendous economic growth over the past 10 years. Therefore, investors should consider investing in emerging markets such as Ho Chi Minh City, because the added value is truly outstanding when compared to their home country.

Since the law changed to allow foreign ownership, foreigners are focusing their investment capital on Vietnam, taking advantage of its relatively competitive prices when compared to the rest of the Asian region.