CBRE: Foreign investors appreciate Vietnam’s property market prospects
When discussing the most dynamic emerging markets globally, Vikram Kohli said that it’s hard to lose sight of Vietnam with its strong economic growth.
Rapid urbanisation supported by a young, growing and educated population bode well for an economy with one of the world’s fastest-growing GDP rates, he said, citing the World Bank’s forecast of Vietnam’s GDP growth at 6.8% this year.
Home to Asia’s best-performing stock market in 2017 and the second largest retail market in 2018, much of the appeal Vietnam currently holds in its auspicious future, he added.
According to him, since 2015, the majority of big M&A transactions have been championed by those investing in property development sites, followed by hotels, apartments and offices. This is a testament to the fact that those pouring money into Vietnam are in it for the long run.
Over the last three years, foreign investment in Vietnam’s real estate market has increased year-on-year. In particular, developers from Singapore, Japan and the Republic of Korea have favoured development sites in downtown areas and close to Metro Line stations.
Local developers usually enter into joint venture agreements with foreign developers on the premise of optimising decision-making in site sourcing and project management.
Running alongside the strong demand for commercial sites is the relative shortage of supply, which is especially prevalent in the market for prime retail and office spaces in Ho Chi Minh City and Hanoi.
Grade A rents in Ho Chi Minh City have risen from about US$35 per square metre per month (psm/month) in the second quarter of 2016 to US$43 psm/month in the second quarter of this year, which results in a healthy 23% growth. Similar office rental growth has been observed in Hanoi over the past two years.
In the office market, an increasing presence of international firms has resulted in developing areas absorbing the overflow of occupants.
Another area generating solid demand is the residential sector, and this segment of the market is expected to motivate the economic growth. Investors from Singapore, and China’s Hong Kong and Taiwan have shown much enthusiasm in the serviced apartment and condominium markets, together representing 75% of total buyers in the buy-to-let market. As a whole, foreign buyers accounted for half of all successful residential deals, which shows that foreign investors are not merely entering Vietnam to set up operations, but also committed to keeping their money here.
This could explain the 15% rise in prime residential prices in Ho Chi Minh City over the past two years, Kohli stated.
Related News
Japanese investors highly appreciate Vietnamese property market
17:41 | 02/04/2023 Import-Export
PM orders close coordination to remove obstables to property market
14:20 | 28/03/2023 Headlines
Vietnam"s retail market proves attractive for foreign investors
15:50 | 27/03/2023 Import-Export
Expectations to boost the corporate bond market
10:18 | 25/03/2023 Finance
Latest News
Saigontex 2023 attracts over 1,300 domestic, foreign businesses
14:01 | 06/04/2023 Import-Export
Mong Cai international border gate sees strong recovery
16:15 | 05/04/2023 Import-Export
Vietnam a potential market for French businesses, investors: experts
16:12 | 05/04/2023 Import-Export
Import and export turnover across Cao Bang prospers but still exists difficulties
10:25 | 05/04/2023 Import-Export
More News
Cashew industry strives to "get on the shelves of world supermarkets"
10:24 | 05/04/2023 Import-Export
HCM City’s industrial production index down 0.9% in Q1
14:47 | 04/04/2023 Import-Export
Fisheries exports estimated at 1.85 billion USD in Q1
14:45 | 04/04/2023 Import-Export
Quang Ninh aims to attract quality FDI inflows
14:43 | 04/04/2023 Import-Export
Exports face many difficulties
13:29 | 04/04/2023 Import-Export
Manufacturing enterprises increase their competitiveness thanks to digital transformation
13:28 | 04/04/2023 Import-Export
32nd Việt Nam Expo promises to boost business linkages
14:19 | 03/04/2023 Import-Export
Prevention of price risks before news that Indonesia increases rice imports in reserve
09:52 | 03/04/2023 Import-Export
Seafood enterprises propose to remove obstacles from exporting to the EU
10:34 | 02/04/2023 Import-Export
Your care
The system has not recorded your reading habits.
Please Login/Register so that the system can provide articles according to your reading needs.
Saigontex 2023 attracts over 1,300 domestic, foreign businesses
14:01 | 06/04/2023 Import-Export
Mong Cai international border gate sees strong recovery
16:15 | 05/04/2023 Import-Export
Vietnam a potential market for French businesses, investors: experts
16:12 | 05/04/2023 Import-Export
Import and export turnover across Cao Bang prospers but still exists difficulties
10:25 | 05/04/2023 Import-Export
Cashew industry strives to "get on the shelves of world supermarkets"
10:24 | 05/04/2023 Import-Export