South Korean investors eager to purchase real estate in Vietnam
Updated at Tuesday, 14 Aug 2018, 10:29
The Hanoitimes - A high-end resort at the coastal province of Quang Nam has received an order of 250 condotels from its partner to resell to South Korean buyers.
Vietnam has seen an influx of South Koreans seeking to acquire real estate as the Southeast Asian country has become an attractive destination for investors and holidaymakers from the kimchi land, according to VnExpress.
A representative of a coastal resort project in the central province of Quang Nam, which has 690 condotels and 90 villas, has tipped a well-known US real estate agency has place order to buy up to 300 products for resale. Of those 300, 250 condotels will be reserved for South Korean buyers who are interested resort products.
Phu My Hung urban area. Photo: Internet
What attracts South Korean buyers at this project is its prime location, great coastal landscape, exclusive design to suit the high-end segment, and, most fundamentally, the absence of Chinese tourists, a broker said.
Industry insiders believe that South Korean people do not simply pick Da Nang just for their holiday purpose. South Korean people married to Vietnamese or have Vietnamese purchase real estate on their behalf are aiming at settling down and living at this coastal city. And it’s becoming a powerful trend.
Doan Thien Viet, CEO of Dai Thang Co., has confirmed that the “spreading investment” trend among South Korean buyers group does exist. Their investment priority has been repositioning from megacities in river deltas to coastal tourist cities, told VnExpress.
According to CEO of Dai Thang Co, a distinctive characteristic of South Korean customers is that wherever they go, they create a community there. Anywhere South Korean people live, invest, purchase homes, work, travel, etc. there will be services established by native South Korean people for their own communities.
They have also been advised to extend the purchase/rental period up to 50 years to run home rental business, a move that can dodge the Vietnamese legislation that restricts foreign homebuying in certain areas or segments.
Viet also revealed that after a time of being regulars at the markets of Ho Chi Minh City and Hanoi, South Korean buyers are rushing to invest in real estate in Da Nang and Quang Nam, forming a buying spree there.
The trend is evidenced by the number of flights from South Korea to Da Nang has already reached dozens per day. South Korean people are establishing the habit of spending their vacations in this coastal city, experiencing long stays here. They are even considering this dynamic city a viable environment for living and working.
Unlike the Chinese who picked Nha Trang as their favorite place, South Korean visitors would prefer Da Nang and Hoi An.
What’s more, South Korean investors are also highly meticulous with their selection of real estate and only invest in high-end properties where population density is low, as they value security and peacefulness, Viet added.
The CEO of Dai Thang Co. predicted that this trend of real estate investment among individual South Korean investors will continue to be viral in the time to come. This is because when a South Korean community is formed in a new locale, they tend to move and invest in real estate together in group.