THE ATTRACTION OF REAL ESTATE IN VIETNAM IN 2017
Since the beginning of the year, the real estate in
Vietnam has attracted a lot of FDI, many trillion projects have been converted
into foreign investors. In the first half of 2017, the attraction of investment
capital and many commercial transfer of real estate market in Vietnam is quite
exciting, showing the market is still very attractive. There are many reasons
to invest in Vietnam, let’s take a look on how it has been working.
Many foreign capital packs to occupy market share
Report
on the real estate in Vietnam in the first quarter of 2017 by Savills
Vietnam has just announced that in recent years, the rapid growth of tourists
has created a large development momentum for any segment of coastal resort. In
addition, in the first quarter of 2017, the real estate market in Vietnam also
witnessed exciting investment activity in many segments.
One
of the outstanding deals is the acquisition of a 0.6-hectare commercial land
plot in a prime location in the center of Ho Chi Minh City for the purpose of
constructing an international complex of type A First in Vietnam of CapitaLand
Group. The project will receive a $500 million investment fund aimed at
commercial properties in Vietnam, launched by the Singapore developer last November.
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| The strategy to investing in Vietnamese market keeps growing |
During the same period, CapitaLand also announced the
acquisition of a 90% stake in a 0.8ha project in Thao Dien, one of the most
popular residential areas in Ho Chi Minh City, to further develop 300
apartments. This move shows the strategy to investing in Vietnamese market of
this investor.
In
March, Hongkong Land officially became a strategic partner of Ho Chi Minh City
Infrastructure Investment Joint Stock Company (CII) in buying properties in
Vietnam on the land fund received in Thu Thiem new urban area. In another
popular residential area of the city, Anagi Investment Group and their
Japanese counterpart Creed Group continued to acquire five blocks of the La Casa
project in District 7 of the group.
In
the segment of resort real estate in Vietnam, following the positive signs in
the tourism industry is the Berjaya Land Group (Malaysia) successfully
transferred all the 70% of shares held in a resort project. 4 stars on Phu Quoc
Island for Sulyna Hospitality with total value of 14.65 million USD.
Vietnam
tourism has had a good start this year, with about 3.2 million international
visitors in the first quarter, up 29% over the same period last year. This is
one of the reasons to invest inVietnam for the investor. This growth is followed by a record
number of 2016, when Vietnam welcomes over 10 million international tourists
and is expected to reach 11.5 million by the end of 2017.
Great profit potential when investing in Vietnamese market
The
above moves show that the real estate in Vietnam is still very attractive to
foreign investors poured capital. According to CBRE’s New Asia-Pacific
Investment Prospects Survey in 2017, although Asian-Pacific investors do not
intend to invest more in real estate than they did last year, there is still a
huge demand for high risk assets due to potential returns. According to CBRE,
37% of respondents said that, “pursuing yield margins” was the main driver of
investment in real estate, up from 15% in 2016.
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| The real estate in Vietnam is still very attractive to foreign investors poured capital |
For the Vietnamese market, CBRE said that the interest in
the Vietnamese market increased significantly thanks to the support of macro
platforms and high initial yields. Typical entry forms are based on joint
ventures with domestic investors.
Actual
time in the market has partly proved that the above is true. Tom Moffat,
Managing Director of Capital Market Division, CBRE Asia, commented: “Although
the interest in overseas markets remains strong, policy volatility in the
United States and Europe will making many investors in Asia Pacific more
focused on intra-regional investment”.
The
above moves show that the real estate in Vietnam is still very attractive to
foreign investors to invest capital. Along with the large-scale urbanization
process together with positive economic prospects create pressure. Developing
high-level infrastructure in Vietnam, is creating a great opportunity for the
development of the real estate industry.
“Source:
Mogi.vn”
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