Vietnam, say Rick Mayo Smith and Peter Ryder. It's intensely beautiful, culturally compelling and very, very cheap.
After centuries of strife, the future's looking very bright indeed for Vietnam, reckon Mayo Smith and Ryder of Indochina Capital, writing in the Gloom, Boom and Doom Report - and that's especially true of tourism and property. First, consider the geography. The 500km Central Coast of Vietnam has one of the longest and most beautiful stretches of beach in Asia, it's close to breathtaking mountains and tropical forests that are now protected national parks, and it has an extraordinary cultural heritage. (The Central Coast boasts three UNESCO World Heritage sites and is the closest beach location to the stunning ancient temple complex at Angkor Wat.)
What's more, the area enjoys warm seas and a temperate tropical climate almost all year round, a sophisticated and popular cuisine, and is well located to attract tourists from its more prosperous (but colder) neighbours - China, Japan and Korea - as well as more adventurous Western travellers. To add to this mix, this formerly war-torn nation is now an extremely safe travel destination, free from international terrorism threats and with a stable government and leadership - voted the safest country in Asia for the past two years running by Political Risk Consultancy. Given such a rosy outlook, it's perhaps no surprise that Vietnam is currently the third-fastest-growing tourism market in the world. Since 1990, foreign visitor arrivals to Vietnam have boomed ten-fold to nearly three million a year. Already, the Central Coast comes third behind Phuket and Bali as the region's most popular destination, with more than 650,000 visitors a year. From 1999 to 2002, demand for hotel rooms grew by an annual average of 56.8%, a surge that's thanks in part to the international airport at Danang (one of the Central Coast's three main centres). Now, that growth is set to continue as Vietnam's Central Coast matures into a major world destination over the next ten to 20 years. In tandem with the growth in tourism, the area is making big strides in both physical infrastructure - bridges, tunnels, roads - and in legal-financial frameworks.
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So could now be the time to invest in Vietnamese real estate?
The answer is yes, so long as you get good legal and local advice. The legal regime in Vietnam is now more secure and transparent than in many other Asian countries, with many real estate projects reliant on 100% foreign investment and long-term leases of 50 years with 20-year extensions. The odds are that the country is in a stage of development similar to that of Thailand, Malaysia or China ten or 20 years ago, or Korea and Japan 30 years ago. The next ten years are sure to be exciting and profitable for those who know the market. That said, ownership, clear title, and other security and legal issues still need careful due diligence - but the recent passage of the country's new Land Law has greatly clarified the legal rights of property owners, and done much to clear the way for further foreign investment.
So what do you get for your money?
Prices at the premium end of the new-build market range from US$1,000- $2,000 per square metre, and over-subscription is common. More modest apartments aimed at middle-income earners go just as rapidly for around $400-$600 per sq m. International property website https://www.viviun.com/ is currently offering a large (294 sq m) five-bed villa in Saigon for $125,000, or a whole resort on Phu Quoc island made up of four bungalows, a restaurant and bar for $200,000.
See https://www.indochinacapital.com/ or https://www.viviun.com/ for more information.
Brazil, says Sol Lideman of International Living. Not only is it increasingly fashionable, but the infrastructure is top-notch and you can pick up a beach house just about anywhere for a song.
Thousands of Britons are so inspired by their summer holidays that they end up looking for a property overseas. And for the last few years, to do so has been pretty easy - the strong UK pound and the gains many have made on UK properties have made houses in much of the rest of the world look cheap. However, some places still offer much better value than others, and one of those places is Brazil, where, with a little effort, you can still pick up a charming beach house for a song. Thirty years ago the most fashionable beach in southern Brazil was the coconut-fringed Praia Pernambuco in Guaruja, in the state of Sao Paulo. In the 1970s, Sofia Loren stayed here, and it was a favourite among local film actors, racing drivers and millionaires.
Yet despite being one of the most beautiful beaches in southern Brazil, the Pernambuco and its neighbouring beach Praia Enseada are no longer seen as chic. But that's good news for those of us who aren't too fussed about chic'. It means that, today, homes built 20 or 30 years ago on the more established beaches are selling at bargain prices. Just a year ago, a four-bedroom home with four bathrooms on a one-acre site across the street from a golf course on Praia Pernambuco was sold for a mere US$50,000. And a few months ago, a new three-bedroom brick home, a block from the ocean, sold for $55,000. If you are looking to spend a little more, high-quality three or four-bedroom houses with lush tropical gardens on a fifth of an acre lots within two or three blocks from the water can still be bought for $60,000-$70,000. Houses with partial ocean views sell for $90,000-$100,000. For a full ocean view, those on a smaller budget might want to consider an ocean front or ocean view two-bedroom apartment from $50,000 in Gaaruja and from $40,000 in the nearby towns of Santos, Praia Grande and Itanhaem.
That said, if you want to buy, you might have to move relatively fast. A rise in the Real, Brazil's currency, and a new highway linking Sao Paulo's 20-million inhabitants to the beaches may well see prices firming up. And at the top end, ocean-front homes on the Praia Pernambuco already sell for from $280,000 up to more than $1m, for example. And Rio de Janeiro's beaches are still among the most expensive in Latin America. Ipanema is the most upmarket, where ocean-front apartments go for a minimum of $700 a square foot. Buzios, where Brigitte Bardot swam in the 1960s, is also high-end. Alternatively, the beaches in the northeast (where it rarely rains) have become popular with European travellers. Praia do Pipa in the state of Rio Grande do Norte, and Jericoaquara in Ceara, are good examples.
But a word of warning. Don't buy beach (or any) property in Brazil without first engaging a lawyer to check all the details. Most Brazilian law firms do not have English-speaking staff. Two good ones that do, and which have experience of property throughout the country, are Olivia Arantes (+55 11 3887 5000) and Fernando Nabais da Furriela (+55 11 3846 9050).
Real estate agents suggested by International Living include the following: Carmargo Dias Imoveis 55 11 5536 5099; Iguatemar Imoveis 5513 3383 2020; Aliancia Imoveis 55 13 3355 4649; Casa da Praia 55 13 3333351 6620; Wagner Imoveis 55 13 3353 3777; Biondo 55 13 3353 1710; https://www.praias.com/.
