Hottest Real Estate Market in the World…Guess Where?

 

Your favorite pair of sneakers is probably made their, expensive designer items are made there…where is it?

Vietnam is the hottest real estate market in the world.  Speculators are lining up to buy condos and big name International developers are building entire cities on a bet that the country’s economic future is a winner.  Even individual Vietnamese investors are swarming condos as they see real estate to be a safer investment than the stock market.

Don’t think Vietnam isn’t subject to a global slowdown, but the mind set there is long term…very long term.  They are building cities for the next 150 years, not for the next ten years.   Vietnam is moving toward being the next Asian tiger, some say.  This is because it is a low cost manufacturing hub just as Japan and Mexico were in the 1970’s and 1980’s.

As a result, Vietnam’s economy has grown on average 7.5% a year since year 2,000 and last year alone grew 8.5%.  Vietnam’s potential is being reflected in their office rents.  Ho Chi Mihn City (formerly known as Saigon) has office rents at $49 per square foot, up 29% from a year ago.  Manhattan (NYC), by he way is around $53 – $55 per square foot to give you a point of comparison.  Just since 2006 about 47 condominium projects were launched.  Also, expect 49 new office buildings to be completed in the next 3 years.

That is expansion at a rapid pace.  I wonder what the weather is like?

Your comments are welcome….

Thank you for making me Your Orange County Real Estate Connection.

Best regards, Michael Caruso

~ by Michael A. Caruso on February 6, 2008.