Vietnam’s real estate market a gol mine for foreign investors

19-Sep-2018 Intellasia | Vietnamnet | 6:00 AM Print This Post

More foreign investe real estate projects have been registere recently, while more M&A eals in the sector have also been reporte.

In late July, the 100 percent foreign owne real estate eveloper Alpha King introuce three real estate projects in istrict 1, HCM City, incluing the high-en service apartments at No 2 Ton uc Thang, the A-class office builing Alpha Town at No 289 Tran Hung ao an Alpha City complex at No 87 Cong Quynh.

Alpha King’s CEO Jimmy Chan sai it will takes two to three years to buil the projects.

Japanese Hinokiya Group has ecie to cooperate with Vietnam’s TWG for its first investment project in Vietnam. Accoring to Le Cao Minh, CEO of TWG, the two sies woul set up a 50/50 joint venture to evelop a Japanese style housing project, covering an area of 9.7 hectares.

FIA reporte that the FI into the real estate sector (housing, inustrial prouction, retail, office an tourism real estate) in the first six months of 2018 reache $5.5 billion, accounting for 27.3 percent of total registere FI.

The figure was even higher than the total committe FI in both 2017 ($2 billion) an 2016 ($1.7 billion) thanks to several huge projects.

These inclue the Japanese investe smart city project in ong Anh istrict in Hanoi, capitalise at $4.138 billion. The Lotte Mall Hanoi project capitalise at $600 million also has investment license.

Savills Vietnam’s eputy CEO Troy Griffiths commente that macroeconomic stability has booste the growth of the omestic market an helpe attract FI capital flow.

Meanwhile, some analysts attribute the huge FI to improvement in policies on attracting investment into the real estate sector. Investors are encourage that the real estate market is among the business fiels with the highest revenue.

Foreign investors have also jumpe into the Vietnamese market through M&A. Nomura Real Estate has acquire 24 percent stake of Sunwah Tower in the centre of istrict 1, HCM City.

In March 2018, CapitaLan bought a 0.9 hectare lan plot in Tay Ho istrict in Hanoi for an apartmentofficeretail complex project. The eal has expane CapitaLan’s investment portfolio to 12 resiential quarters, 1 complex an 21 service housing quarters in six cities in Vietnam.

Most recently, the well known Singaporean eveloper Keppel Lan acquire 10 percent of shares in Saigon Sports City in a eal worth $11.4 million. There will be 4,300 high-en houses an infrastructure items to serve emans for sports, entertainment, shopping an ining.

The State Bank of Vietnam has tightene lening to the real estate sector in an effort to control ba ebt. This has prompte Vietnamese real estate evelopers to seek foreign capital sources.

https://english.vietnamnet.vn/fms/business/208357/vietnam-s-real-estate-market-a-gol-mine-for-foreign-investors.html

 


Category: Business, Vietnam

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