Foreign investors in property in Southeast Asia

and Vietnam
Opportunities and Challenges
Winston Lee
Director, Special Projects
PropertyGuru

winston@propertyguru.com.sg
LINE / WeChat ID: winstonleefc

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PropertyGuru Group. All
Part of PropertyGuru Group
Rights Reserved.
Southeast Asian Countries Thailand
Residential Real Estate Market China Culture, Tourism,
India
Updates Diverse Economy.
• 📈 Large Market,
Favorable Investment,
Malaysia Stable Regulation.
Diversity, Developed Economy. • 🏘️Recovery signs,
growing Chinese
• 📈Sizeable Market, Infrastructure, Investor-
interest; incentives for
Friendly Regulations.
• 🏘️Price pressure, cautious launches; Thailand unsold inventory.
manageable interest rates, recovery on track.

Indonesia
Malaysia Archipelago, Growing
Singapore Economy.
Financial Hub, Thriving Business • 📈Largest Market,
Environment. Resource Abundance,
• 📈Small Market, High-Value Services, Business Reforms.
Business-Friendly Regulations. • 🏘️ Relaxation of
• 🏘️ Price growth, cooling measures; healthy Singapore foreign ownership,
launches, Chinese buyers return, moderated positive growth,
growth. middle class rising,
Indonesia urbanization
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Vietnam's Real Estate Market
Attracting Foreign Investors and Growth

Source: Vietnam
China Investment Review
(3/7/2023)

Benefit: China-plus One destination.

Vietnam-China ties spur Chinese businesses' outward

Vietnam expansion, leveraging geographic advantages and policies.

Favorable factors like free trade agreements position

Thailand Vietnam as a manufacturing investment darling.

Focus: Tourism/urban development.

Malaysia Properties: Residential/commercial.

Singapore

Indonesia
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Solutions for Foreign Property Investors
Market Offerings in Southeast Asia
Singapore
Solution: Single Family Office
•
• Key Features: Wealth
Management, residency
Investment Opportunities
• Benefits: Political Stability,
Global Financial Hub
Malaysia
• Solution: Malaysia My Second
Home (MM2H) program
• Key Features: Residency, Tax
Incentives
• Benefits: Lifestyle, investment
Thailand
• Solution: Elite Program
• Key Features: Residency, VIP
treatment
• Benefits: Property Ownership,
Visa support
Indonesia
• Solution: Relaxation of foreign
ownership
• Key Features: Investment
Opportunities, High Returns
• Benefits: Emerging Market,
Economic Growth
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 Source: Nhan Dan (2/7/2023)

Vietnam: FDI Surges, Korean

Investments Boost Prospects!

Source: Vietnam News (16/5/2023)

Source: Vietnam Net (3/5/2023)

Source: Vietnam Express (28/5/2023)

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 Vietnam
Vietnamese Properties: Mainland Chinese Buyers' Profiles

Expat Homebuyer 01 Seasoned Investor

● Convenient living seekers in Vietnam. ● Sophisticated buyers seeking lucrative
🔎 Modern apartments, serviced Vietnamese properties.
residences, or gated communities with 🔎 Lucrative condos, high-yield rental
convenient amenities properties, or emerging development
06 02 projects.

Luxury Home Business set up /

Enthusiast Industrial real estate
● Investors, entrepreneurs, and factory
● Prestige seekers in Vietnam's real estate
owners seek Vietnam as a "China plus one"
market.
06 alternative, capitalizing on the US-China
🔎 Upscale villas, beachfront properties, or
trade war.
luxury condominiums with top-notch
🔎 Commercial properties, office spaces,
facilities.
land for business.
05 03
Commercial Investor
Holiday Home Buyers ● Business expansion buyers eyeing
Second homes or holiday properties in Vietnamese properties.
Vietnam. 🔎 Office spaces, retail units, or industrial
🔎 Resort condos/ Beachfront villas/ properties in strategic locations.
Holiday homes in tourist areas 04

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Chinese Focus on Vietnam: Baidu Search Insights
01 -Buying/purchasing
property in Vietnam

02 - Hanoi property price

03 - Buying/purchasing
property in Hanoi 01 02 03 04 05

04-Ho Chi Minh City property

price

05-Buying/purchasing property
in
Source: Exclusively shared by Baidu’s- Vietnam related keyword
Ho Chi Minh City searches data (2022)

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What are the FAQs from Chinese in Baidu?
Eligibility Property market data
Vietnam/ Bangkok
property latest How big is the
prices 2021 house I can buy
Chinese buying Can the in Vietnam with
properties in Chinese buy Retirement Vietnam properties CNY100,000?
Vietnam buying hacks
property in at Vietnam
Vietnam? Can I emigrate if I buy
properties in Vietnam?

Property investment
LinhProperty buying/selling
How much
Vietnam
is the price Vietnam property Vietnam property
properties
Can I apply a investment policy prices trend
housing loan when per square agency
buying overseas meter in
properties? Vietnam properties
Vietnam? investment Selling Where is the Vietnam properties
Vietnam Vietnam property freehold

properties
Vietnam properties
investment property best bought
worth of disadvantages in Vietnam?
invest?
Source: Exclusively shared by Baidu- long-tail Copyright © PropertyGuru Group
keywords data (2022) Asia’s Leading Online Property Group. All Rights Reserved.
WeChat Index Reveals Mainland Chinese Keen on Vietnam

Vietnam
Investment

Vietnam
Property

Vietnam Investment: 2,530,330 Vietnam Property Investment:

(29/5/2023) - Increasing interest! 6,371,742 (9/5/2023) - Strong growth!

WeChat Indexes are used to measure and analyze the popularity, engagement, and impact of content
and accounts on the platform.
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$weet spots of Chinese buyers for overseas properties
5%
5%
Vietnam Property Prices (USD)

15%
40%
<71,685
71,685-143,372
286,750-716,862
143,372-286,750
716,858-1,433,716
>1,433,716
15%

20%

Source: ANJUKE overseas properties browsing data (2022)

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ABSD spurs Singaporeans’ overseas property buys

ABSD introduced in 2011 to deter foreign

and entity residential property purchases

01
and speculation, with increased rates in
2013, 2018, 2021, and Apr 2023. The
ABSD Rate WEF 27th April 2023
measures led to a decline in transactions,
but property prices remain unaffordable
for average Singaporeans. Profile of 1st 2nd 3rd
buyer Property Property Property
01 Singapore
0% 20% 30%

02
Citizen
No ABSD for overseas
property, subject to 03 Permanent
Residents 5% 30% 35%
bank conditions.
02
Foreigners
60% 60% 60%

03
International property investment
preferred for diversification and
lower barriers to entry.
Corporate
Entities 60% 60% 60%
The ABSD residential property count includes properties that are owned wholly, partially, or jointly with others.

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 Entrance

Invest Asia Property Show (IAPS)

Last Chance Alert: Snag Your Spot! Limited Booths Available
G2 G1
SOLD Refreshment Area
SOLD
RLC (PH) – Southern Marina (MY)

China-based agents
P2
P3
P1
SOLD
SOLD – Sime Darby (MY)
– The Strand (TH)

P4

SOLD
G3 – Greenwoods (ID) G4

SOLD SOLD
– Sinar Mas Land (ID) – Regent
G5
SOLD
- BRDB (MY)
S3 S2 S1
SOLD SOLD
- Bayou Mgmt (MY) - Central Group (ID) SOLD
- Mayland, KL (MY)
SOLD
S4
- Andaman (TH)

Seminar Area
S6 S5
SOLD
Note:✓ Floor plan is - CMC (TH)
subject to change Copyright © PropertyGuru Group
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 Successful Covered 4 First-Tier
Collaboration Cities

Asia Pacific Property Conference 2019 PropertyGuru and ANJUKE • Quarterly events in major
collaborated for successful cities.
2019 APPC. • Platform for developers,
agencies to interact.

APPC Shanghai APPC Beijing APPC Shenzhen APPC Chengdu

2 April 2019 10 July 2019 18 September 2019 5 December 2019

Over-achieved by 138% Over-achieved by 60% (Agent)/60%

Over-achieved by 60% Over-achieved by 30% (Agent)/294% (Agency) (Agency)
100 100 100 100
Agents 160 Agents 130 Agents 238 Agents 160
160% 130% 238% 160%

50 50 50 50
Agencies 80 Agencies 90 Agencies 197 Agencies 80
160% 180% 394% 160%

TARGET
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Asia Pacific Property Conference 2023 Shanghai
Floor plan – Xintiandi Ballroom (Level 3)

Booth Number
China-based agents
Platinum 4
Reserved
Reserved
- Infinity Real Reserved
- Grand Asset (TH)
Gold 4 - Estate(TH) - Grand Asset (TH)

Silver 5

Total 13

• Date: September 8-9, Reserved

2023 (Friday & - SP Setia (MY)

Saturday)
• Time: 11am-6pm
• Venue: The Langham
Hotel
SOLD
- Habitat (TH)

Note: Floor plan is subject to change

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Winston Lee, Director, Special Projects
Email : Winston@propertyguru.com.sg
LINE / WeChat ID: winstonleefc

15