Photography by Jan Yong
Vietnam Begs to Differ…
We have all heard of our fair share of horror stories on how property investors who purchased overseas projects marketed in their country of residence got burnt doing so. In Singapore, there is widespread cautiousness and scepticism on foreign property investments because the promised capital gains and rental yields did not materialise, or in some extreme cases, the developers went bust. This has thus prompted the authorities to regulate the marketing of foreign properties in Singapore.
Having said that, I strongly believe that two major factors are to be blamed when investors get burnt – greed, as opportunities in Singapore’s market dry up, combined with ill-informed choices through listening to one-sided sales pitches. It is the choice investors make that is the root of all disappointments. Since international real estate offerings are infinite as opposed to capital for investment, there is no real reason to blame lousy investments on the product itself.
With various internal problems made worse by China’s economic slowdown, most countries in the region are negatively impacted. Regional real estate generally experienced a poor 2015 and experts are predicting that such sluggishness will exacerbate in 2016 and beyond. Vietnam is a single exception to this.