Vietnam, with its low property prices, has become a new treasure hunting ground for Hong Kong and China buyers New home prices in Ho Chi Minh City averages at about HK$2,800 per sq ft, which is 14pc and 18pc of the average price for Hong Kong and Singapore respectively.
With properties priced at a discount to those in neighbouring Singapore and Thailand, Vietnam is rapidly drawing Hong Kong and China investments its way and becoming a popular investment destination.
Buyers from the mainland, Taiwan and Hong Kong last year accounted for 25 per cent of the Southeast Asian nation's total transactions by foreign buyers, up from 21 per cent in 2016, according to data from CBRE Vietnam.
Carrie Law, chief executive of online agency Juwai.com, said that given Beijing's ongoing controls on capital outflows, Vietnam's relatively low prices were very appealing to Chinese buyers.
"Buyers with limited assets overseas are able to purchase properties in a rapidly growing market and diversify their investments. You can buy a 700,000 yuan (US$109,781) home in Vietnam with the money you have overseas, even if you can't afford to buy a 5 million yuan home in Australia or the US" she said.
"Chinese buyer demand for Vietnam properties in the first quarter of 2018 was more than 300 per cent higher than the first quarter of 2017. The country is still lower on the preference list than Thailand or Malaysia, but demand is growing" said Law.