HO CHI MINH CITY: Come July, the potential pool of buyers for CapitaLand’s Vista Verde condominium project in Ho Chi Minh City will grow exponentially.

A new law will allow foreigners with valid residential visas, as well as foreign companies, to buy in. Now, only those married to Vietnamese or foreigners deemed to be contributing to national development can own property.

Singapore developer CapitaLand says what makes Vietnam real estate compelling is a higher yield on rent compared to other countries in Asia.

CEO of CapitaLand Vietnam Chen Lian Pang says this ranges from 6 to 7 per cent depending on the location and type of property. "Vietnam has just gone through the bottom (economic) cycle. It is picking up, so there is a lot of upside actually.”

The sector is betting on three groups of buyers: a growing domestic middle class, returning overseas Vietnamese, and foreign executives moving in to set up manufacturing outposts.

Channel NewsAsia understands that more than 90 percent of the buyers who have booked units at Vista Verde so far are local. And this is not expected to change for this project as well as others across the country.

The market is not expecting a surge in foreign buyers when the new law kicks in this July because foreign property ownership is still capped at 50 years, and only 30 per cent of any apartment block an be sold to outsiders.

Experts say investors are also wary of opaque and ever-changing laws, and the uncertainty of urban development plans.

Richard Leech, Executive Director of CBRE Vietnam, Hanoi, says infrastructure development needs to be monitored. “We are at an early stage. Where the airport is going to go, where the metro system is going to go - that is going to change the face of where people want to live in the future."

Still, the new law is widely seen as a positive move to invigorate the property market and reinforce the broader message that Vietnam is open for business.

Managing Partner of ZICOlaw Vietnam, David Lim, said: “The government is looking at ensuring that Vietnam continues to be competitive, continues to be attractive to foreign investors, and to create an environment where business can thrive.”

For now, construction work carries on in Vietnam’s big cities, as the market readies itself for the world.

By Tan Qiuyi - Channel NewsAsia - April 17, 2015