Real Estate Investing

We’ve discussed how the international real estate scene is faring. In many places, much better than the United States, to be sure! But where is the hottest hot spot in the real estate world? Not Mexico! Not Canada! Not even Iraq!

Vietnam has bragging rights - it is the hottest real estate market in the world, so says Orange County, Calif. realtor Michael Caruso. From individual locals to international developers, everyone is jumping on board. Condos and even entire cities are starting to dot the Vietnamese landscape, as many locals consider real estate one of the most stable investment options.

The developing economic picture in Vietnam is very long-term, and doesn’t seem to be going downhill anytime soon. It may be in large part because it has a lot to improve on, being primarily a low-cost manufacturing mecca akin to the historical roles of Mexico and Japan.

“Vietnam’s economy has grown on average 7.5% a year since year 2,000 and last year alone grew 8.5%,” Caruso writes. “Vietnam’s potential is being reflected in their office rents. Ho Chi Mihn City (formerly known as Saigon) has office rents at $49 per square foot, up 29% from a year ago. Manhattan (NYC), by he way is around $53 - $55 per square foot to give you a point of comparison.”

According to Caruso, 47 condominium projects were started over the last two years. Additionally, about 49 new office complexes are expected in the next three years. Of course, Vietnamese home prices are escalating in response to the incredible commercial real estate boom. NPR interviewed one young lady who paid the equivalent of $92,000 for her two-bedroom, one-bath apartment in a good neighborhood. The value of the property has grown triplefold over the last three years. Pretty impressive, to say the least.