A common trait between them is that they are popular educational destinations for children from wealthy families.
“Demand related to educational needs is the main motivation for Vietnamese real estate investors to look overseas,” Powell said.
The most notable transaction by a Vietnamese investor was the purchase of an office building on Old Broad Street, London, in 2023.
The £200 million ($255.8 million) transaction was the largest in the London office property segment last year.
Many investors buy properties abroad just to provide housing for their children while they study, he said.
Some are certainly interested in cash-flow generating properties, such as offices and hotels, he adds.
Savills expects demand for foreign real estate among Vietnam’s ultra-wealthy population to increase in the coming years, driving a need for specialist advisory services.
This demand is driven by the growing number of ultra-rich people in the country, which is expected to exceed 1,500 by 2026, according to data from German statistics site Statista.
Last year, Vietnamese investments in overseas properties amounted to nearly $421 million, according to data from the Ministry of Planning and Investment.
The most popular sectors for business investments are real estate, construction, wholesale, retail and electricity.
At the same time, Vietnamese real estate also attracts foreign investors.
Savills noted that there are more and more investors from India, Hong Kong and Singapore eyeing the Hanoi, Ho Chi Minh City and Da Nang City property markets for their diverse range of luxury properties. high quality and lucrative rental yields.
Once the amendments to the adopted laws come into force, the real estate market will become more transparent and will likely see an even greater influx of foreign investment, according to Savills.
