Real estate is a very lucrative area for many investors, which demands not only courage and knowledge of a wide variety of industries but also the ability to sense and react to market changes. Currently, real estate agencies in Vietnam are considered “the right-hand men” to help investors identify golden investment opportunities. So how can an investor pick the right real estate agency in Vietnam for them? Savills Vietnam will help you find out more about the criteria for selecting a good real estate agency.
Understanding the Real Estate Market in Vietnam
Overview of the Real Estate Industry in Vietnam
Before diving into the selection process, it’s crucial to have a basic understanding of Vietnam’s real estate market. Vietnam has experienced remarkable growth in its real estate industry over the past decade, attracting local and international investors alike. The country’s economic development and urbanization have contributed to a thriving property market. From residential properties to commercial and industrial spaces, Vietnam offers diverse investment opportunities.
Market Trends and Growth Opportunities
Vietnam’s real estate market is characterized by several key trends and growth opportunities. These include:
Urbanization: Rapid urbanization in major cities like Hanoi and Ho Chi Minh City has increased demand for residential and commercial properties.
Foreign Investment: Vietnam’s attractive investment policies have encouraged foreign investors to enter the real estate market, driving growth and diversification.
Infrastructure Development: Ongoing infrastructure projects, such as transportation networks and industrial parks, are creating new investment prospects in different regions.
Tourism and Hospitality: Vietnam’s thriving tourism industry has created a demand for hospitality and leisure properties, including hotels and resorts, particularly in popular tourist destinations.
Understanding the market trends and growth opportunities can help you make an informed decision when choosing a real estate agency.
Be careful of “ghost projects” in Vietnam’s real estate market
“Ghost projects” refers to non-existent real estate projects or ones that have not met legal requirements to be sold commercially. This is a big problem in Vietnam’s real estate market, as the rapid urbanization process has led to a rise in ghost projects across the country.
According to the Vietnam Association of Realtors, out of around 300,000 realtors operating around the country, only a tenth of them have been educated and licensed officially. Unlawful realtor practices have created huge problems for investors and real estate businesses in developing country, such as:
– Market manipulation tricks cause sudden surges in real estate prices (far beyond their real values), only leading to sharp falls later on, harming investors.
– Creating ghost projects to scam investors out of their money.
Therefore, professional real estate agency in Vietnam plays an important role in maintaining the market’s stability and bridging supply and demand, fostering the market’s development. Every investor needs to find the right agency to work with because an agency can:
– Provide in-depth understanding of the market: An agency can be highly knowledgeable about a region that the investor is interested in, and can provide detailed consultation on investment opportunities, risks and potential market changes to help the investor make the right choice. In fact, someone who has received professional consultation is much more likely to make better investment decisions than someone who hasn’t.
– Assist investors in complicated legal procedures: Investing in a real estate project requires a great deal of complicated paperwork and legal procedures, which regulations can change over the years. Real estate agencies can handle this part for you to save you time, and make sure that the procedures are done correctly and on time.
– Help investors avoid risks: There is always a possibility of falling for ghost projects, but professional real estate agencies can help you avoid this trap. They can introduce you to real estate projects owned by trustworthy developers, and you can easily verify their legality before investing in them.
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How to find a trustworthy real estate agency
When finding a real estate agency in Vietnam to work with, you need to pay attention to the following factors:
– How long have they been operating: only prestigious, high-quality real estate agencies with many satisfied customers are able to survive for many years in Vietnam. Agencies with many years of experience and local knowledge can offer highly-skilled consultants and lucrative real estate projects for investors.
– Their partnership with large global real estate corporations: Large real estate corporations and foreign companies are very selective in which agencies they are willing to work with. The agencies have to satisfy requirements on legality and workforce, meaning that they can be trusted in terms of transparency and adherence to the law.
– Clear, transparent procedures: Law-abiding contracts, appropriate policies, projects being backed by large banks, and clear payment terms are key for a trustworthy real estate agency.
– An office you can visit: This factor is important in helping you gauge how trustworthy and professional a real estate agency is. You can assess its workforce skill, work culture and other relevant details to help you decide whether you want to place your trust in them or not.
Savills Vietnam – Developer and provider of top industrial real estate projects in Vietnam
Having easy access to accurate information is important in real estate investment, and a good agency can help you assess the market and identify lucrative market opportunities.
Savills Việt Nam is Vietnam’s biggest provider of industrial real estate services and projects. With two offices in HCM City and Hanoi and teams of highly-skilled, market-sensitive consultants, the company has helped many domestic and foreign businesses get access to high-quality real estate services and projects.
So far in 2022, Savills has introduced many outstanding projects to large customers. For example, Savills has helped Fuchs Group rent a land plot in Ba Ria – Vung Tau Province’s Phu My 3 Specialized Industrial Park; closed out a factory rent deal between Framas and KTG Industrial; and helped GAW NP Capital rent out 17 hectares of land plot in Saodo Group’s Nam Dinh Vu Industrial Park (Details)
Savills Vietnam is also partners with many large real estate projects around the country:
– Authorized distributor for Lancaster Legacy in HCM City’s District 1
– Project operation management unit for Hateco Group
– Authorized distributor for The 6nature Da Nang
– Project operation management unit for The Peak – Midtown
Read more: Logistics Industrial Real Estate in Vietnam: A Profitable Investment Opportunity
The development of real estate market has created problems with ghost projects and market manipulation tricks. Therefore, finding a trustworthy real estate agency in Vietnam is very important in avoiding risks and making sure that one’s investment is fruitful.
If you are interested in working with a real estate agency, please contact Mr John Campbell via hotline: 0986.718.337 for detailed consultation from our top experts in the field.
In addition, you can find out more about our industrial real estate products here.
Frequently Asked Questions (FAQs)
What services do real estate agencies in Vietnam offer?
Real estate agencies in Vietnam offer a wide range of services, including property buying and selling, rental and leasing assistance, property management, investment consultancy, legal and financial advice, and market analysis. They act as intermediaries between buyers, sellers, landlords, and tenants, facilitating smooth business transactions.
How do I choose the right real estate agency in Vietnam?
To choose the right real estate agency, consider factors such as their reputation, track record, expertise, network, customer service, and pricing structure. Research and compare multiple agencies, read client reviews, and schedule consultations to assess their suitability for your specific needs.
Are there specific agencies that specialize in certain types of properties?
Yes, some agencies specialize in specific types of properties, such as residential, commercial, or industrial. It’s important to choose an agency that aligns with your requirements. Consider their expertise, experience, and track record in dealing with the type of property you are interested in.
Are real estate agencies in Vietnam regulated?
Yes, real estate agencies in Vietnam are regulated by the government. They need to comply with certain rules and regulations to operate legally. It’s advisable to work with licensed property agencies that adhere to these regulations to ensure a secure and reliable transaction.
Can a real estate agency help with legal and financial aspects of a transaction?
Yes, many real estate agencies in Vietnam offer assistance with legal and financial aspects of a transaction. They can help with property title checks, contract preparation, and connecting you with legal and financial professionals to ensure a smooth process.
Remember, choosing the right real estate agency is crucial for a successful real estate transaction in Vietnam. Take the time to research, compare, and evaluate agencies before making your decision. With the guidance and expertise of a reputable agency, you can navigate the complexities of the real estate market and achieve your property goals with confidence.