Question: Within the wellness real estate market, which segment has the most potential for growth in Viet Nam?
Viet Nam has a lot of potential to develop real estate for the elderly as the number of nuclear, rather than multi-generational, families are on the rise. Shifts in household composition are being driven by a number of factors, including urbanisation and lifestyle changes. Viet Nam also has an ageing population with an increasing life expectancy, which means increased demands for healthcare services for the elderly.
Their requirements are diverse and range from specialised facilities to 24/7 care services. Many elderly people do not need to be hospitalised, but they do need spaces with specialised care and suitable facilities and services.
Real estate for the elderly can be rental properties or homes for sale. While this market is well-established in countries like the UK or New Zealand, it is still quite new in Viet Nam. This is based on tradition as multi-generational households are common, and children are expected to look after their parents in their old age.
When looking at the opportunities in Viet Nam, one needs to remember the crucial role foreign retirees play. The appeal of retiring abroad is increasing, and many retirees are looking for destinations where they can relax and enjoy their retirement while still having access to good healthcare facilities.
Currently, Malaysia’s foreign direct investment (FDI) inflows are reaping the rewards from this segment. The country has introduced the “Malaysia Second Home” (Mm2h) programme, a special program for foreign retirees, and has introduced tax breaks for medical imports.
As Viet Nam has many Korean and Japanese expats, there are good opportunities to develop real estate for both local and international retirees. These customers will prefer destinations with golf courses or sports centres, like Da Nang or Phu Quoc.