Real estate developers from Singapore, Japan and South Korea have favoured development sites in downtown areas and within close proximity to metro line stations.
Prime retail and office space in Hanoi and Ho Chi Minh City remained much sought after due to the increasing presence of international firms. The prices of Grade A offices rose YoY to $43 per sq m per month in Q2 2018, from $35 sq m per month in Q2 2016.
In the serviced apartment and condominium markets, investors from Singapore, Hong Kong and Taiwan have shown a lot of enthusiasm. They accounted for 75% of the total buyers in the buy-to-let market.
Foreign buyers accounted for 50% of all successful residential deals, it means that foreign investors are not merely entering Vietnam to set up operations but they are committed to keeping their money here, according to Vikram Kohli, regional managing director Southeast Asia, CBRE. This could be an explanation for the 15% rise in prime residential prices in Ho Chi Minh City over the past two years.
With an economy among the world’s fastest growing GDP rates, Vietnam is listed one of the most dynamic emerging markets globally with an expanding middle class and rapid urbanisation supported by a young, growing, and educated population, explained CBRE.
Especially, with GDP growth rate projected at 6.8% in 2018 by the World Bank, the country has fueled the appetites of global investors looking to make their mark in the burgeoning domestic real estate market.
Last but not least, efforts to ease restrictions on foreign holding of public companies allow the composition of the economic landscape to diversify and encourage foreign ownership of commercial assets.