The Vietnamese real estate market is showing signs of recovery as more capital came from overseas Vietnamese in the first half of this year.
|Many overseas Vietnamese invest in housing market|
The State Bank of Vietnam branch in HCM City reported that, by the end of June, overseas remittances that were sent via banks reached USD1.9 billion, an increase of 3% compared to the same period last year.
Experts have said that because the world economy is recovering, remittances this year may increase by 15-20%. The amount of overseas remittance in HCM City is forecast to be as high as USD4.8 billion.
Real estate investment accounted for 15% of all remittances, however people are turning their attention back to real estate market. In 2011 Vietnam received USD9 billion in remittances, 50% of which was invested in property market.
Nguyen Duc Tuan, returned from Japan temporarily to buy houses so his whole family, including the grandparents and siblings, could live near each other. "This project near Long Thanh Airport will make it easier for me to visit my family whenever I return to Vietnam." Tuan said.
The Kim Oanh Real Estate Company, the investor of the project where Tuan bought the homes, said 30% of their customers are overseas Vietnamese. Many customers also made transactions for their relatives overseas.
Many in the real estate sector are hoping for a turnaround given the slower inflation, lower interest rates and remittances from overseas Vietnamese.