Remittances to resort real estate growing

The World Bank and the Global Knowledge Partnership on Migration and Development (KNOMAD) have estimated that overseas remittance flows to Vietnam in 2021 reached $18.1 billion, with resort real estate being a safe “haven” for investment with steady, long-term profits.

Many banks have said that despite the pandemic, remittance volume growth over the last two years has averaged 30-50 per cent each year. Value has increased 10-20 per cent, with the earnings of Vietnamese people in traditional markets such as the US, Australia, and Canada also growing.

The policy of creating conditions to open up the cash flow of banks, such as promoting strong investment in technology and connecting with foreign partners to transfer money faster and cheaper and with lower minimums, have also enabled overseas Vietnamese to send more remittances home.

In addition to supporting relatives, Vietnamese people in traditional markets also send money home to invest, with the intention of returning to Vietnam to live in their old age.

Many analysts have pointed out that this abundant source of capital will be an important resource helping restore purchasing power in the real estate market, as about 30 per cent of remittances are going to real estate at the moment.

The policy of allowing foreigners to own and buy houses in Vietnam has also stimulated cash flow into real estate. Housing prices in Vietnam are still quite cheap compared to those in developed countries.

Projects in areas with convenient traffic links and that can be managed and monitored remotely are preferred by many overseas Vietnamese investors. Expensive products such as beach villas and golf resort villas are still relatively cheap in Vietnam compared to countries that many overseas Vietnamese live in.