Property news roundup: Revised Land Law allows more investments from overseas Vietnamese, and other headlines

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For PropertyGuru’s real estate news roundup, Vietnam’s revised Land Law allowing overseas Vietnamese to become land users will bring more property investment opportunities to OVs. In other headlines, real estate services firm Cushman & Wakefield says the Philippines is an attractive destination for international real estate investors and occupiers, buoyed by its positive growth outlook, while PropTrack provides the Home Price Index for March 2024.

Revised Land Law expected to drive remittances to real estate market: Experts

The Land Law (revised), which expands land use rights for overseas Vietnamese (OV) and Vietnamese citizens residing abroad, meets the aspirations of OVs and contributes to mobilising investment resources to Vietnam at the same time, said Nguyen Duc Hieu, standing member of the National Assembly (NA) Economic Committee, in a report by VietnamPlus.

Article 4 of the law includes the group of the Vietnamese origin residing abroad but without the Vietnamese nationality (also known as overseas Vietnamese) as land users, providing them with full rights to land use and housing like domestic citizens and Vietnamese residing abroad who have the Vietnamese nationality, the official noted.

Article 28 also clarifies that people of the Vietnamese origin residing abroad who are permitted to enter Vietnam are allowed to buy and rent houses associated with residential land use rights, and receive residential land use rights in housing development projects, inherit the right to use residential land and other types of land in the same plot of land with houses, he said, adding that these regulations are not included in the current version.

Deputy Managing Director of Savills Vietnam Troy Griffiths commented that this change will bring more investment opportunities to real estate buyers being OVs, while creating great potential for the market thanks to direct investment capital from OVs.

The Philippines to attract international real estate investors, occupiers — Cushman & Wakefield

The Philippines is emerging as an attractive destination for international real estate investors and occupiers, buoyed by its positive growth outlook, according to real estate services firm Cushman & Wakefield.

“Southeast Asia’s comparatively strong GDP (gross domestic product) forecast has made it a bright spot in the global economy,” Cushman & Wakefield’s Head of Global Occupier Services for Asia-Pacific Cameron Ahrens said, as reported by BusinessWorld.

The firm added that the growing acceptance of new working styles combined with the cost constraints of a higher interest rate environment bodes well for lower-cost and emerging markets in the region.

“Manila also has a booming office sector thanks to its significant proportion of shared service centers, or business process outsourcing offices,” Mr. Ahrens said.

Moody’s Analytics expects the Philippine economy to expand by 5.8 percent this year, driven by robust demand for electronics that could catalyze export growth across the Asia-Pacific region. The country is also projected to be the third-fastest-growing economy in the region for the year.

Mr. Ahrens noted that the higher interest rate environment and broader macroeconomic climate meant that global occupiers, including multinational companies, continued to take a cautious approach to costs.

PropTrack Australia Home Price Index – March 2024

2024 has kicked off busily and more homes have hit the market this year giving buyers more choice.

Demand has kept up with that increase, with many anticipating that interest rates will fall in late 2024 likely providing a positive tailwind for activity.

Housing demand buoyed by population growth, tight rental markets, resilient labour market conditions and home equity gains also remain in play, alongside the stable interest rate environment.

Meanwhile, the sharp rise in construction costs and labour and materials shortages have slowed the delivery of new builds, hampering the supply of new housing. This imbalance between supply and demand is offsetting the higher interest rate environment and impact of affordability constraints with home prices continuing to lift.

The PropTrack Home Price Index shows national home prices hit a new record high in March, lifting 0.34 percent. That brings prices up 1.57 percent so far this year to sit 6.79 percent above March 2023 levels.

The Property Report editors wrote this article. For more information, email: [email protected].

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