Vietnam Property Market with Damian Sung

Vietnam Property Market with Damian Sung

This is one part of the full interview with Asia Bankers Club’s Damian Sung. Asia Bankers Club is a physical asset investment club with an extensive focus in the overseas real estate market in Southeast Asia. We are going in-depth on Vietnam in this episode. You may have heard of Vietnam’s recent fast-paced growth and developmental craze. Not only is there a boom to the tech and manufacturing space, but a new generation of young, educated Vietnamese are entering the workforce; a big factor that can lead to economic upsides and a positive surge to the real estate market. 

這是我們跟Asia Banker’s Club 的Damian Sung 完整訪問的其中一部份。Asia Banker’s Club是一個實體資產投資社,專注東南亞的房地產投資。我們會在本集深入探討越南。你可能有聽說過越南近來迅速的增長及瘋狂的發展。不單只科技和生產業有爆炸性增長,而且越南的年輕新世代正在進入勞工市場;這是一個能引致經濟增長及房地產業發展的重要因素。

Key Discussions

  • Why Invest In Vietnam
  • Invest in property
  • Overrated & Underrated Regions

I was looking into Vietnam a few years ago with my friends who were interested in investing in properties there. Back then in 2008 and the city wasn’t developed at all, and so naturally, I was skeptical. But, after studying the market and the country’s development, I am convinced that Vietnam has a lot of growth potential. Too bad, I missed out on the deal.

There are a few good insights Damian hinted, such as the payment term and mortgage tips. Also, Damian’s assessment of Hai Phong as an underrated city made me curious and do more research. I was able to conclude the same thing and I believe this region is worth looking into for property investment. If you happen to have some great potential material or projects in Hai Phong you would like to share, please send to us and maybe we can make an episode going in a deeper dive into Hai Phong.

我於幾年前和有興趣的朋友們研究在越南投資房地產。在2008年,城市並未開始發展,於是我對此有點質疑。但是,在研究過市場及越南的發展後,我確信越南有很大的發展潛力。可惜地,我錯過了黃金機會。

Damian為此提供了幾樣很好的提示,例如付款和抵押的貼士。還有,Damian在評估海防為一個受低估的城市後,我對此感到好奇並且搜集了些資料。我和他的結論是一樣的,而我相信在考慮投資房地產時,這個城市值得考慮。如果你碰巧在海防有些高潛力的項目,而你希望分享,請你聯絡我們,可能我們製作一集更深入探討海防的節目。

▶ About the guest:

Damian Sung is a Sales Director at Asia Bankers Club. They are a physical asset investment club with an extensive focus in the overseas real estate market in South East Asia including Vietnam, Cambodia, and Thailand.  They have a pipeline of exclusive projects in these countries throughout the year, and host a series of weekend seminars.

▶ Connect with the guest

▶ Source & Supporting:

Hanoi: Hanoi is the capital of Vietnam. http://www.vietnam-guide.com/hanoi/

Ho Chi Minh: Ho Chi Minh is the largest city in Vietnam. It has the largest population and was previously known as Saigon. http://www.vietnam-guide.com/ho-chi-minh-city/ 

Capital gain: Capital gain is the value of an asset that increases over time after being held for some period of time. It can be both short and long term. https://www.investopedia.com/terms/c/capitalgain.asp#:~:text=Capital%20gain%20is%20an%20increase,be%20claimed%20on%20income%20taxes.

Hai Phong: Hai Phong is the main port city of Vietnam and is situated in the Northeast of the region. http://www.vietnam-guide.com/hai-phong/ 

Vinhome: Vinhome is Vietnam’s largest commercial real estate company located in Hanoi city. https://vinhomes.vn/ 

MRT: MRT is known as both Metro Rail Transit and Mass Rapid Transit. It is often referred to as metro train or subway(depending on the country). https://en.wikipedia.org/wiki/MRT 

▶ Transcript [English & Chinese]

English Transcript

Darren Wong:

So Damian, 

what’s going on in Vietnam right now?

Damian Sung:

Vietnam, they’ve done so well over the pandemic. Nobody’s wearing a mask in Vietnam. 

Darren Wong:

Really?

Damian Sung:

Nobody wears masks. Clubs, bars, restaurants are all open. Even our developer in Vietnam, they’re having a company-wide team building trip right now. So I can say, Vietnam is back to normal for now, without the outside world coming in.

Darren Wong:

So how about the real estate world, which is that’s what we’re here for?

Damian Sung:

Vietnam real estate has been really hot since, I would say, 2015, especially amongst the Koreans, Japanese, Hong Kong and Singaporeans. It’s probably one of the hottest real estate market right now for these investors.

Darren Wong:

I see. So in a way it comes to Vietnam, alot of people obviously might not be aware of. What are things that they should do? How does it compare to different places in Southeast Asia? How do you assess those projects?

Damian Sung:

So for Vietnam, there are a few things for foreigners to invest. There’s a foreigner quota, where foreigners are allowed to buy up to 30% of an apartment building. So if there’s 100 units, they can buy up to 30 units. But that doesn’t necessarily mean that developer will have to allocate 30 units for the foreign buyers. You want to buy under foreign quota. Another thing is Vietnam, no mortgage, even as a local Vietnamese getting a mortgage, you’re looking at rates of 7 to 8% right now.

Darren Wong:

That’s high. 

Damian Sung:

Yeah. But in 2016, it was like 10 to 11.

Darren Wong:

Really? 

Damian Sung:

Yeah.

Darren Wong:

Okay. 

Damian Sung:

Foreigners can get mortgage if you live in Vietnam, and work in Vietnam, but the rate is 7 to 8%. So 100% of the Vietnam real estate investment is cashed by.

Darren Wong:

I see. So it’s tricky for the foreign investors. Am I correct? 

Damian Sung:

It’s not really tricky. It’s just purely cash. You park your money. Vietnam is all about capital gain in the future.

Darren Wong:

Because obviously Vietnam is a huge country, what are some places that you think is not really good, some of them are really, really good, but underrated? And then obviously is more about 

the reason behind that too.

Damian Sung:

So Vietnam, I would say most of the investors focus on two cities, Hanoi and Wu Chi Minh. That’s where your biggest real estate developments are happening at the moment. Underrated? I would say Hai Phong. Hai Phong is a very underrated city. Hai Phong is east of Hanoi. It’s at the deep sea port. So you see a lot of the European or the Japanese actually going there, and it’s probably saying Hai Phong will be the underrated city of Vietnam.

Darren Wong:

So why is it underrated then?

Damian Sung:

Not a lot of developments going on. So very low supply but very high demand. There are a lot of expats there.

Darren Wong:

Okay.

Damian Sung:

High end apartments to high end condos.

Darren Wong:

I see. So that means that there are more expats want to live on the area. Okay, that’s cool. At the same time, how do you assess? Is it different when it comes to looking at deals in Vietnam than other places of Asia?

Damian Sung:

If you look at the payment terms, and everything, I think is similar. Well, besides Thailand, Thailand is like 25%, and then 75% when you do handover. For Vietnam, for foreign developers, you could pay up to 50% before handover. So you pay 50%. Say you buy a $2 million condo, you pay 1 million, and then the project is completing in three years, so you pay 1 million by 2022. And then you pay the rest when you’re ready to hand over the apartment. But for local developers, they could ask you to pay up to 70%. So there’s a little difference between a local developer and foreign developer.

Darren Wong:

I see. But do you have any projects on your hands right now?

Damian Sung:

We just launched a Hanoi project, I guess, last week.

Darren Wong:

It was 24th of January? 

Damian Sung:

Yeah, 24th of January. If you want to know more about it, you could contact us. But we also have other projects that’s in the pipeline. We just don’t have enough weekends to do all the 

projects.

Darren Wong:

Because you guys are too popular. That’s it.

Damian Sung:

We have a lot of good projects ahead.

Darren Wong:

So for that project, what’s the play here? Is it the community is building, there’s more infrastructure? What is the play around that?

Damian Sung:

The take for this project that we just launched is it’s within a smart city. So Vinhomes is one of the biggest companies in Vietnam. They build big cities like townships. So this project is actually located within the township, the biggest play is that it’s right next to the MRT line. The local Vietnamese, they don’t know the importance of the MRT line yet, because they never had it. If you’re a, say, Hong Kong buyer, anything close to a MRT line, the prices are a lot higher. But Vietnam, there’s nothing like that yet. Everybody’s still relying on motorbikes. Public Transportation is not really a thing, if you know. So, I would say the play for this, the investment strategy would be to buy something near MRT. Then watch the capital gain.

Darren Wong:

I see. MRT is the equivalent of MTR in Hong Kong. 

Damian Sung:

Yeah. 

Darren Wong:

I think one more question. Because I know, you lived and you love Vietnam. Lived there for a while. What do you think of the outlook of it? For people in terms of thinking about how they can relate to and what is going to become?

Damian Sung:

So Vietnam is a relatively young country, like 70% of population is aged under 30. So if you look at the outcome of the whole country, it’s very vibrant. You don’t have the older generation mindset, these are young kids spending more money. They buy nice things, they want to live in nice places. Nobody plays the stock market in Vietnam. So these guys, they want to earn money, they want to save money to buy real estate. So that’s one of the extra strategies for our investors to buy now, and then sell to these locals 10 years down the line.

Darren Wong:

You make me sound like I want to move there right now.

Damian Sung:

It’s not a bad place to live. Very low cost of living, people are very, very friendly. The only thing is the traffic.

Darren Wong:

Oh, yeah, I heard about that.

Damian Sung:

You got to learn how to walk, learn how to ride the motorbike. But other than that, it’s a good place to live. 

Darren Wong:

I see. So if people want to talk to you more about Vietnam or other projects as well, how do we suggest them to reach out to you and talk more? 

Damian Sung:

You could always email me and our colleagues, and we could help you do a private consultation, or invite you to our upcoming seminars, and go from there.

Darren Wong:

That’s great. And we’re going to talk about Thailand next, right? 

Damian Sung:

Yeah. 

Darren Wong:

Alright. Thank you.

Chinese Transcript

Darren Wong:

Damian,越南現在發生什麼事?

Damian Sung:

越南,他們在疫情中做得很好。在越南沒人戴口罩。

Darren Wong:

真的嗎?

Damian Sung:

沒人戴口罩。俱樂部、酒吧、餐館都在營業。即使是我們在越南的開發商,他們也有一個全公司團隊精神建設之旅。所以我可以說,越南現在已經恢復正常了,沒有受到外來世界的干擾。

Darren Wong:

那麼房地產行業呢,這就是我們來這裡的目的?

Damian Sung:

越南的房地產從,大約2015年開始就非常熱賣,尤其是在韓國、日本、香港和新加坡。它可能是這些投資者現時最熱門的房地產市場之一。

Darren Wong:

我明白了。所以在越南,很多人顯然可能不知道。他們應該做什麼?與東南亞不同的地方相比,情况如何?你如何評估那些項目?

Damian Sung:

對越南來說,有一些東西是外國人可以投資的。有一個外國人配額,外國人最多可以購買30%

公寓樓。所以如果有100套,他們最多可以買30套。但這並不一定意味著開發者會為外國買家分配30套。你想按國外配額購買。另一件事是越南沒有抵押,甚至作為一個國家當地的越南人獲得抵押貸款,現在的利率是7%到8%。

Darren Wong:

太高了。

Damian Sung:

是的。但在2016年,大概是10至11。

Darren Wong:

真的嗎?

Damian Sung:

是的。

Darren Wong:

好的。

Damian Sung:

外國人來說如果您住在越南,並且在越南工作,您可以獲得抵押貸款,但是利率是7%到8%。所以100%的越南房地產投資是現金支付的。

Darren Wong:

我明白了。因此,這對外國投資者來說很棘手。我說的對嗎?

Damian Sung:

這不是很棘手。只是純現金。你把錢存起來。越南的一切都是為了未來的資本收益。

Darren Wong:

因為越南顯然是個大國,有哪些地方你認為不太好,有些地方真的很好,但被低估了?很明顯,這更重要的是背後的原因。

Damian Sung:

所以越南,我會覺得,大多數投資者集中在兩個都市,河內和吳志明。那是你工作的地方

最大型的房地產開發正在進行。被低估了的城市?我會說海防。海防是一個被低估的都市。

海防在河內以東。在深海港口。所以你看到了很多歐洲人或日本人真的去了那裡,他們可能會說海防將會是被低估的越南都市。

Darren Wong:

那為什麼會被低估呢?

Damian Sung:

發展不多。供給很低,但需求很高。那裡有很多外國人。

Darren Wong: 

好的。

Damian Sung: 

高端公寓到高端公寓。

Darren Wong: 

我明白了。因此,這意味著有更多的外籍人士想住在這一地區。好吧,那很酷。

同時,你如何評估?在越南的交易和亞洲其他地方的交易有什麼不同嗎?

Damian Sung:

如果你看一下付款條件和一切,我認為是相似的。嗯,除了泰國,泰國是25%,然後交接時再交75%。越南來說,對於外國開發商,您可以在移交前支付高達50%的費用。所以你付50%。比喻說你買了200萬美元的公寓,你付了100萬,然後項目在三年內完成,所以到2022年你要付100萬。然後你在準備好交房後支付餘額。但對於當地開發商來說,他們可能會要求你支付高達70%的費用。因此,對本地開發商和外國開發商來說是有分別的。

Darren Wong: 

我明白了。但是你現在手頭上有什麼計畫嗎?

Damian Sung: 

我們剛剛啟動了一個河內項目,大約上周。

Darren Wong: 

那是一月二十四號?

Damian Sung:

是的,1月24日。如果你想瞭解更多資訊,可以聯繫我們。但我們還有其他項目正在籌備中。我們只是沒有足够的週末來做所有的項目。

Darren Wong: 

因為你們太受歡迎了。就是這樣。

Damian Sung: 

我們未來還有很多好項目。

Darren Wong: 

那麼對於那個項目,是怎樣的操作?是社區正在建設,還是有更多的基礎設施?那是怎麼回事?

Damian Sung: 

我們剛剛啟動的這個項目是在一個智慧城市里。所以Vinhomes是越南最大的公司之一。他們像城鎮一樣建設大城市。所以這個項目實際上位於鎮裡,最大的一個優勢是它就在捷運線路旁邊。當地的越南人,他們還不知道捷運線路的重要性,因為他們從來沒有捷運。如果你是,比方說,香港買家,任何接近捷運線路的東西,價格都要高很多。但是越南,還沒有這樣的事。每個人都還在依賴機車。如果你知道的話,公共交通其實不是什麼東西。所以,我想說的是,投資策略是購買捷運附近的東西。然後觀察資本收益。

Darren Wong:

我明白了。捷運相當於香港的地鐵。

Damian Sung:

是的。

Darren Wong: 

我想還有一個問題。因為我知道,你曾經在越南生活,你愛越南。在那裡住了一段時間。

你認為它的前景如何?對於那些在思考他們能如何聯繫及思考前景的人們來說?

Damian Sung: 

所以越南是一個相對年輕的國家,大約70%的人口年齡在30歲以下。所以如果你看看整個國家的前景,是非常有活力的。他們沒有老一輩的思維,年輕人會花更多的錢。他們買高質素的東西

他們想住在好的地方。在越南沒有人玩股票市場。所以這些人,他們想掙錢,他們想存錢

購買房地產。所以這是我們的投資者的額外策略之一,現在買入,然後在10年後賣給這些當地人。

Darren Wong: 

你讓我聽起來像是我想馬上搬到那裡。

Damian Sung:

這地方是一個很好的地方。生活成本很低,人們非常非常友好。唯一的問題是交通。

Darren Wong: 

哦,是的,我聽說了這件事。

Damian Sung:

你要學會走路,學會騎機車。但除此之外,那裡是個好地方。

Darren Wong: 我明白了。因此,如果人們想和你更多地談論越南或其他項目,我們怎樣建議他們與你接觸並多談一些?

Damian Sung:

你可以隨時給我或我的同事發郵件,我們可以幫助您進行私人諮詢,或者邀請您參加我們即將舉行的研討會,然後從那裡開始。

Darren Wong:

太好了。接下來我們要談談泰國,對嗎?

Damian Sung:

是的。

Darren Wong: 

好的。謝謝您。

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